Convergent Technologies and 3Com Agree to Merger Plan

Convergent Technologies and 3Com Corp. announced Monday that they have reached an agreement in principle to merge.

The companies, both in the computer field, will be renamed by the new board of directors if the merger is completed. The move still is subject to the reaching of a definitive agreement and the approval of shareholders of both companies.

Under the proposed transaction, each outstanding share of 3Com would be exchanged for one share of Convergent common stock, giving current 3Com shareholders ownership of about 27% of the two companies’ 49.8 million shares.

The agreement calls for Convergent’s chief executive, Paul C. Ely Jr., to head the combined company as chairman and chief executive. L. William Krause, president of 3Com, would become president and chief operating officer.