3Com Corp has now completed its acquisition of Onstream Networks Inc (CI No 3,016, 3,023), which it bought for access to Asynchronous Transfer Mode and broadband wide area network technology. First announced in October, the deal involved the exchange of 3.8 million shares and options to purchase 3Com shares for all outstanding shares and options of OnStream. Based on the closing price of 3Com stock on November 1, the transaction was valued at $258m – some would say a high price – and will be accounted for as a pooling-of-interests. 3Com says it expects to record a one time charge of $7m against its second quarter earnings to cover the costs and fees of the transaction. Onstream becomes the Broadband Access division of 3Com’s Wide Area Networks Operations division, and the sales force will be directed towards network access providers and Internet service providers. Onstream technology becomes part of 3Com’s AccessBuilder family of remote access, wide area network access and broadband applications products. 3Com now claims it is the world’s second largest networking company.
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