Huawei and Symantec has concluded an agreement whereby Huawei will acquire Symantec’s 49% stake in Huawei Symantec Technologies for the sum of $530 million (around R4.245 billion). Upon closing, this agreement will give Huawei full ownership of Huawei Symantec.

Huawei Symantec is a Hong Kong-based joint venture established by the two companies in 2008.The company provides its enterprise customers with security, storage and systems management solutions. Huawei and Symantec have both agreed that the next stage of growth for the joint venture would benefit from the direction of a single owner.

“I am thrilled that Huawei Symantec will become a key pillar of Huawei’s ICT 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,” said Guo Ping, deputy chairman of Huawei.

“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. Looking ahead, Huawei will continue to increase investment in Huawei Symantec, reaffirming its commitment to customers.”

“Symantec achieved the objectives we set four years ago and exit the joint venture with a good return on our investment, increased penetration into China and a growing appliance business,” added Enrique Salem, president and chief executive officer, Symantec.

The agreement is subject to regulatory approvals and other customary closing conditions and is expected to close during Q1 of 2012. Until the closing, Huawei and Symantec stated that they will continue to comply with their commitments under the existing joint venture agreements.

 

In related news Sony Corporation and Telefonktiebolaget LM Ericsson have recently agreed that Sony will acquire Ericsson’s stake in Sony Ericsson, to make the joint venture a wholly owned subsidiary of Sony.