A happy ending for TippingPoint (TPTI), formerly known as Netpliance (NPLI). The company is going to be purchased by 3Com for $47.00 per share.
A few historical facts:
-- The company executed a one-for-fifteen reverse split on August 20, 2001.
-- Adjusted for the reverse split, the company had 4,040,000 shares outstanding at the end of 2000 and the stock closed the year at $7.95 per share.
-- At the end of 2000, the company had $68 million in cash, or $16.83 per share.
-- In December 2000, some of the insiders attempted to take the company private at a split-adjusted price of $9.75 per share. That effort failed.
-- At the end of 2000, the company began to shift its focus from its original business plan and sold off its Internet operations in early 2001.
-- On Monday, 3Com announces that it is purchasing TPTI for $47.00 per share.
biz.yahoo.com
3Com Corporation to Acquire TippingPoint Technologies, Inc.
Monday December 13, 9:42 am ET
Leading Intrusion Prevention System Strengthens 3Com's Enterprise Offering and Enhances Secure, Converged Voice and Data Networking Portfolio
MARLBOROUGH, Mass.--(BUSINESS WIRE)--Dec. 13, 2004-- 3Com Corporation (Nasdaq: COMS - News) today announced it has signed an agreement to acquire publicly held TippingPoint Technologies, Inc., (Nasdaq: TPTI - News). TippingPoint is the leading provider of network-based Intrusion Prevention Systems (IPS) that deliver in-depth application protection, infrastructure protection and performance protection for corporate enterprises, government agencies, service providers and academic institutions. With this acquisition, 3Com's customers will now have access to one of the industry's most compelling secure, converged voice and data networking solutions portfolio, leveraging TippingPoint's award-winning IPS solutions. Also, TippingPoint customers will benefit from 3Com's global reach and infrastructure, while continuing to experience TippingPoint's high-touch security expertise.
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 total purchase price will be approximately $430 million including acquisition costs and assumed options using the treasury method. 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. Upon approval, 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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