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HP agrees JV with Tsinghua for China server business
2015-05-21 15:00:00| Telecompaper Headlines
(Telecompaper) HP announced an agreement to spin off its enterprise business in China in a joint venture with Tsinghua University. Under the definitive agreement, Tsinghua Holdings subsidiary, Unisplendour Corporation, will purchase a 51 percent stake in a new business called H3C, comprising H3C Technologies and HP's China-based server, storage and technology services businesses, for approximately USD 2.3 billion, valuing the total business at USD 4.5 billion (net of cash and debt). With around 8,000 employees and USD 3.1 billion in annual revenue, the new H3C will be market leader in China in networking and a leader in servers, storage and technology services, HP said. The company will be able to leverage Tsinghua's research capacity to expand further its portfolio. The new H3C will become a subsidiary of Unisplendour, a publicly traded operating subsidiary of Tsinghua Holdings, the asset management arm of Tsinghua University in China. The transaction is expected to close near the end of 2015, subject to Unisplendour shareholder vote, regulatory approvals and other closing conditions.
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Category:Telecommunications