Huawei Symantec

History

2011

Huawei Technologies and Symantec companies announced in November, 2011 that Symantec agreed to sell to Huawei the share in their joint venture Huawei Symantec. Symantec which in 2008 invested 150 mln. dollars in this joint venture and which received a 49% share sells it for 530 mln. dollars now. (When the joint venture was created, Symantec had an opportunity to receive a majority share.) It is expected that the deal will be closed at the beginning of 2012, after approval by regulating authorities. Symantec specified in the statement that the founder companies carried out several rounds of discussion and negotiations for the last months and eventually compounded that for future growth of Huawei Symantec one owner will be the best option.

Guo Ping, the vice chairman of the board of Huawei, noted in the statement that Huawei Symantec built a strong product portfolio and that Huawei will continue to invest in the company. "Integration of innovative Huawei Symantec technology into security and data storage with corporate products of Huawei will strengthen a leading position of Huawei in a cloud", - Guo Ping noted. Enrique Seyl, the president and the general manager of Symantec, emphasized in the statement that his company achieved the goals, including good return of investments, strong provision in the Chinese market where its share grew by 46% for the last three financial years, and development of the growing business of devices. Daniel Ayvz and James Moore, financial analysts of FBR Capital Markets company, write in the analytical note devoted to this solution of Symantec that financial success of its investments into the joint venture shows that the management of Symantec successfully acted as the strategic investor and got on the Chinese market and the market of hardware devices.

On November 14, 2011 Huawei Technologies Co., Ltd companies. (Huawei) and Symantec Corp. signed the agreement according to which Huawei takes 49% of the shares Huawei Symantec Technologies Co., Ltd at Symantec. (Huawei Symantec) for 530 million dollars. Upon completion of this transaction Huawei will acquire full authority of property for Huawei Symantec.

The agreement should be approved and other normal procedures. Completion of the transaction is planned in the first quarter 2012. Until closing of the transaction of Huawei and Symantec will fulfill all undertaken obligations under the available agreement on joint venture.