Huawei buys out Symantec for control of joint venture

Huawei buys out Symantec for control of joint venture

Summary: Huawei has bought out Symantec to become the sole owner of the companies' joint venture, Huawei Symantec, boosting the Chinese networking specialist's storage and security portfolio

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Huawei has bought out Symantec's share in a joint venture between the two companies, giving it sole control and access to the business's storage and security technologies.

It will purchase Symantec's 49-percent share of the Huawei Symantec business for $530m (£335m), the Chinese company announced on Monday. Once the deal closes, Huawei plans to rename the company and expects to hire more employees. The partners did not say how the joint venture's intellectual property would be allocated.

"The new company will integrate its unique product offering and technologies into Huawei's rapidly expanding portfolio of customised, end-to-end vertical industry solutions for enterprise businesses," Huawei told ZDNet UK.

"We do not anticipate many, if any, of the new company's employees being impacted, other than in a positive way, as a result of this transaction. Huawei will continue to increase investment in the new company, which is currently in an expansion phase. As such, we expect to employ more people over time," it added.

Huawei Symantec, which was created as a joint venture in 2008, has Chinese offices in Shenzen, Chengdu, Beijing and a location in Cupertino, California. Among its technologies are storage systems including an all-flash storage array; security router, firewall and VPN hardware; servers; and a variety of software and hardware packages.

"Symantec achieved the objectives we set four years ago and exited the joint venture with a good return on our investment, increased penetration into China and a growing appliance business," Enrique Salem, chief executive officer at the Mountain View-based company, said in a statement.

"Today, China is one of Symantec's fastest growing markets," he added. "Expertise gained from this endeavour has also led to our growing appliance business that provides our customers the additional choice of Symantec market-leading security and storage software in an easy-to-deploy appliance."

Huawei expects the agreement to close in the first quarter of 2012, subject to regulatory approval and other closing conditions.


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Topic: Tech Industry

Jack Clark

About Jack Clark

Currently a reporter for ZDNet UK, I previously worked as a technology researcher and reporter for a London-based news agency.

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