PALO ALTO, California (AP) — Hewlett-Packard Co. says it has agreed to buy networking software and equipment maker 3Com Corp. for about $2.7 billion in cash.

The 3Com products will be folded into HP's own networking equipment business. HP says the deal will add new products to its line and help expand its presence in China. HP said in a statement yesterday that customers want more than one vendor in a sector dominated by Cisco Systems Inc.

HP says it will give 3Com stockholders $7.90 per share. Both companies' boards have approved the deal, which HP expects will close in the first half of 2010.

3Com is based in Marlborough, Massachusetts. In the most recent quarter, it had $290.5 million in revenue.