If you have money, they say the time to buy is when the economy is down. The time to buy a new car was certainly when the cash for clunkers program was running thanks to the poor economy. HP is taking advantage of the economy and has announced that it will be buying 3Com.

The deal values 3Com at $7.90 per share for a total value of $2.7 billion. HP says that the purchase will give it a much better presence in China and that it will allow the company to expand its switching offerings.

The merger will also allow HP to add routing solutions to its line. The deal is subject to customary closing conditions and has been approved by the boards of both 3Com and HP. Shareholders still need to approve the deal as well as regulators. The merger is expected to complete in the first half of 2010.