Shares of 3Com Corporation (NASDAQ:COMS) rose more than 31% after financial traders applauded Hewlett Packard’s acquisition offer for $2.7 billion. The deal was announced late Wednesday night and indicates HP’s strategic direction in competing with Cisco Systems Inc. (NASDAQ:CSCO).

The $2.7 billion offer is a 39% premium offer on 3Com’s valuation based on the share price on Wednesday closing price of $5.69. The close of today’s share price was $7.46.

“We have a favorable view on this proposed acquisition,” stated J.P. Morgan analyst Mark Moskowitz. The deal “provides an important building block to becoming a one-stop shop for IT convergence,” added Moskowitz in a report.

The news of the deal also caused 3Com competitor stock prices to drop such as Juniper Communications and Brocade Communications. Juniper’s stock price dropped 2.56% and Brocade Communications dropped 12.65%.