US HP sells 51% of China JV to varsity firm for $2.5 billion
A Chinese information technology and communications company under Tsinghua University has purchased a 51 per cent stake in American technology multinational corporation (MNC) Hewlett Packard’s (HP) China-based joint venture for $2.5 billion. Experts are upbeat that the move by Unisplendour Corp Ltd (UNIS), under Tsinghua University, will have a positive impact on the information technology (IT) market and will cultivate new localisation routes for foreign enterprises, state-run Xinhua quoted the experts as saying.
With an estimated valuation of $4.5 billion China-based H3C computing unit chalked up revenue of $3.1 billion and profits of $400 million in 2014. Formally, the deal is expected to be sealed by the end of 2015, the report said.
H3C, which sells networking equipment like servers and storage, was established in 2013 by telecommunication giant Huawei and 3Com, a digital electronics manufacturer. Hewlett Packard purchased 3Com in 2010.
Xu Jinghong, chief executive of Tsinghua University Science Park (TusPark), believes that H3C will develop into a market leader through the cooperation with Tsinghua. Hewlett Packard will maintain ownership of its other businesses in China, including business services, software and HP Helion Cloud.
The Palo Alto (California)-headquartered company was founded in a one-car garage in Palo Alto on January 1, 1939, by William “Bill” Redington Hewlett and David “Dave” Packard, starting with an electronic test equipment line.