News...3Com Completes Acquisition of NBX Corporation
SANTA CLARA, Calif.--(BUSINESS WIRE)--March 9, 1999--3Com Corporation announced it completed the acquisition of Andover, Mass.-based NBX Corp., a leading developer of reliable and powerful network-based telephony systems that integrate voice and data communications over small business LANs and WANs.
The transaction, valued at approximately US$90 million in cash and the assumption of stock options, will be accounted for as a purchase and is expected to be dilutive in the near-term, with an impact on earnings per share in the fourth fiscal quarter of approximately $.02 - $.03, exclusive of a one-time charge for in-process technology.
The in-process technology charge is currently being evaluated, but is expected to be less than 20 percent of the purchase price. The transaction was originally announced on Feb. 23 and closed on March 5.
This acquisition further accelerates 3Com's development and deployment of converged network solutions, products and services for small and growing organizations. NBX adds an entirely new capability for increased productivity: consolidation of voice and data information onto a single network, resulting in dramatic cost savings and a new generation of converged applications.
3Com estimates the worldwide market for LAN telephony will be approximately US$5 billion by 2003 with more than two-thirds of the sales going to small and medium enterprises.
As the leading networking supplier to small businesses for Internet access, sharing of office computers and remote access for mobile workers, 3Com customers will benefit by NBX's award-winning technology becoming more readily available and supported by 3Com.
For more information on LAN telephony or this acquisition, please see the press release announcing the acquisition of NBX Corporation at www.3com.com/pressbox.
About 3Com Corporation
With more than 200 million customers worldwide, 3Com Corporation connects more people to information in more ways than any other networking company. 3Com delivers innovative information access products and network system solutions to large, medium and small enterprises; carriers and network service providers; PC OEMs; and consumers. 3Com. More connected.(TM) For further information, visit 3Com's World Wide Web site at www.3com.com or the press site at www.3com.com/pressbox.
Note to Editors: 3Com is a registered trademark and More connected is a trademark of 3Com Corporation.
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