Chinese telecom equipment maker Huawei Technologies Company Limited has announced that the company will acquire a 49% stake in Huawei Symantec Technologies Company Limited, a joint venture established by Huawei and Symantec, for USD530 million.
The transaction is subject to regulatory approvals and is expected to close in the first quarter of 2012. On the completion of the transaction, Huawei Symantec will become the wholly-owned subsidiary of Huawei.
According to Huawei, over the past few months, Huawei and Symantec have held several rounds of discussions and negotiations over the future of the joint venture. Huawei and Symantec have mutually agreed that the next stage of growth for the joint venture would benefit from the direction of a single owner.
Guo Ping, deputy chairman of Huawei, said that they are thrilled that Huawei Symantec will become a key pillar of Huawei's information and communication technology solutions. The integration of Huawei Symantec's innovative security and storage technology with Huawei's enterprise products will reinforce Huawei's leading position in cloud computing. Huawei Symantec has achieved tremendous success in the past four years, having built a portfolio of products and solutions that are widely recognized by customers and business partners. Looking ahead, Huawei will continue to increase investment in Huawei Symantec, reaffirming its commitment to customers.
Enrique Salem, chief executive officer of Symantec, said that Symantec achieved the objectives they set four years ago and exited the joint venture with a good return on their investment, increased penetration into China and a growing appliance business. Salem said they remain committed to ongoing investment in China as well as building additional relationships in the region.
Huawei Symantec is a Hong Kong-based joint venture established by Huawei and Symantec in February 2008. The company provides customers with innovative security, storage and systems management solutions.
