3Com of Marlborough, Mass., said TippingPoint offers network-based intrusion prevention systems that deliver in-depth application protection, infrastructure protection and performance protection for corporate enterprises, government agencies, service providers and academic institutions. TippingPoint is headquartered in Austin, Texas, and employs 125 people.
3Com will pay $47 a share in cash, representing a 13% premium over TippingPoint's closing price on Friday. 3Com expects the deal to close in the third quarter of its fiscal 2005. TippingPoint CEO Kip McClanahan will become a division president, reporting directly to 3Com CEO Bruce Claflin.
"TippingPoint's products, solutions and employees are all world-class," said Claflin. "We will provide them access to the 3Com's global resources and infrastructure to expand their ability to deliver best-of-breed security products. The integration of TippingPoint into 3Com enhances our ability to deliver secure, converged networks to the enterprise market."
On Monday, 3Com fell 23 cents to $4.21, and TippingPoint rose $4.76 to $46.42.