3Com Selling Telecom Division To Focus On Enterprise Networking


3Com plans to expand its enterprise networking offerings following the sale of CommWorks, a company division that builds gear for telecom service providers.

3Com said Tuesday it reached an agreement to sell selected assets of CommWorks to UTStarcom, Alameda, Calif., for about $100 million in cash. The deal is expected to close within 60 to 120 days, the companies said.

"Upon completion of this sale, 3Com will be a dedicated enterprise networking company, with a laserlike focus on meeting the needs of the enterprise customer," said Bruce Claflin, 3Com president and CEO, in a statement.

"The sale of CommWorks for $100 million bolsters our already-strong balance sheet, a balance sheet that will be put to work in support of expanding our enterprise strategy," Claflin said.

3Com plans to expand into higher-end data and voice offerings to compete more effectively for mid- to large-size customers and the channels that serve them, the company said.

The company specifically cited IP telephony, security, storage, wireless technology, gigabit and 10 gigabit switching, Layer 3 switching and Layer 4-7 switching as areas where it planned to enhance its product offerings.