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3Com To Buy TippingPoint for $340 Million

3Com has signed an agreement to purchase the security company TippingPoint for $340 million.

Under the terms of the agreement, 3Com will pay $47 cash per outstanding share of TippingPoint stock which represents a 13 percent premium over the closing price on Friday December 10, 2004.

The purchase is aimed at strengthening 3Com's secure, converged voice and data networking solutions by adding TippingPoint's network-based Intrusion Prevention Systems (IPS) to its portfolio. TippingPoint's IPS provides application protection, infrastructure protection and performance protection for enterprises, government agencies, service providers and academic institutions.

The acquisition is subject to various standard closing conditions, including regulatory approval and approval by TippingPoint stockholders, and is expected to close in the 3rd quarter of 3Com's fiscal 2005.

TippingPoint will operate as a division of 3Com with TippingPoint CEO, Kip McClanahan, assuming the role of division president, reporting directly to 3Com CEO, Bruce Claflin. TippingPoint is headquartered in Austin, Texas, and employs approximately 125 people.

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