Huawei to take full ownership of Huawei Symantec
15 November 2011 |
Huawei has announced an agreement to take full ownership of Huawei Symantec, a joint venture that was established between the China-based vendor and Symantec Technologies in 2008.
Under the terms of the deal, Huawei will invest $530 million to acquire a further 49% stake, giving it 100% ownership of the security, storage and systems management company.
Based in Hong Kong, the joint venture provides customers with a range of technology solutions to tap in to a growing need for security on networks. In recent months Huawei and Symantec have held several rounds of discussions and negotiations over the future of the joint venture and they mutually agreed Huawei Symantec would benefit from the direction of a single owner.
"Huawei Symantec has achieved tremendous success in the past four years, having built a portfolio of products and solutions that are widely recognised by our customers and business partners,” said Guo Ping, deputy chairman of Huawei. “Looking ahead, Huawei will continue to increase investment in Huawei Symantec, reaffirming its commitment to customers.”
Symantec president and CEO, Enrique Salem, explained that he was optimistic with regards to the opportunities the merger had given the company in the Chinese market. "Symantec achieved the objectives we set four years ago and exited the relationship with a good return on our investment, increased penetration into China and a growing appliance business."
The agreement is expected to close in the first quarter of 2012 subject to regulatory approval. Until the closing, Huawei and Symantec will continue to comply with their commitments under the existing joint venture agreements.