Early Bird Special (EBS)

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COMS- 3Com to buy TippingPoint for about $430 million US in cash

Monday , December 13, 2004 11:55 ET

MARLBOROUGH, Mass., Dec 13, 2004 (The Canadian Press via COMTEX) --3Com Corp. agreed to acquire TippingPoint Technologies Inc., a maker of network security products, for about $430 million US as it beefs up security for offerings such as Voice over Internet Protocol.

The Marlborough, Mass.-based provider of network systems Monday said its cash offer of $47 a share represents a 13 per cent premium over TippingPoint's closing price of $41.66 on Friday. The $430-million purchase price includes closing costs and assumed options. 3Com expects to close the purchase in its fiscal third quarter ending in February, subject to regulatory and other conditions.

The company said TippingPoint's line of "intrusion protection" security products will complement its offerings in Voice over Internet Protocol and other network services.

3Com said TippingPoint, which is based in Austin, Texas, will become an operating unit under the presidency of its current chief executive Kip McClanahan.

TippingPoint employs about 125 people.

For the year ended Jan. 31, TippingPoint posted revenue of $5.7 million. 3Com generated $698.9 million in revenue in its latest fiscal year, which ended in May.

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