HEWLETT-PACKARD (HP), one of the country’s largest multinational employers, is making a move into the network equipment market by striking a $3.1 billion (€2.09 billion) deal for 3Com in a major challenge to Cisco Systems.

The deal is the latest sign that technology giants from IBM to Oracle are increasingly encroaching on each other’s markets as they seek to become one-stop shops for computing, networking and data storage. Cisco itself this year pushed into the server market, in which HP is a major player.

HP said it would pay $7.90 per share for 3Com, a 39 per cent premium over its closing price before the deal was announced. The transaction values 3Com at $2.7 billion, excluding its net cash.

HP employs over 4,000 people across operations in Leixlip, Dublin, Galway and Belfast. It recently announced a new €11 million expansion project in Co Galway which is to add 50 new jobs at its Ballybrit facility. – (Additional reporting: Reuters)