Tags: huawei | symantec | venture

Huawei to Buy Symantec Stake in Joint Venture

Monday, 14 Nov 2011 05:22 PM

Huawei Technologies plans to buy Symantec Corp's 49 percent stake in their joint venture for $530 million.

Integrating the venture's security and storage technology with Huawei's enterprise products will help Huawei in cloud computing, Huawei's deputy chairman Guo Ping said in a statement Monday.

The agreement is subject to regulatory approval and is expected to close in the first quarter of 2012, Huawei said.

"There shouldn't be any political or regulatory issues related to this," said Wunderlich Securities analyst Brian Freed. "It's a good thing for Symantec in that it's been a drag to their earnings per share. I'm sure its incrementally positive."

The venture has lost money since it was set up in February 2008, according to Symantec's most recent annual report filed with the U.S. Securities and Exchange Commission.

Symantec posted $123 million in losses for its share of the venture's losses from February 2008 to December 2010.

Symantec achieved the objectives that it set out for the venture, and is leaving with a good return on its investment, Symantec Chief Executive Enrique Salem said in the statement. The company will continue to invest in China, he said.

Huawei Symantec, a Hong Kong-based joint venture set up by Huawei and Symantec in 2008, provides security, storage and systems management technology.

Huawei said the companies discussed whether to end the venture during the past few months.

Symantec shares rose 2.8 percent to $17.40 in after-hours trading.

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Huawei Technologies plans to buy Symantec Corp's 49 percent stake in their joint venture for $530 million. Integrating the venture's security and storage technology with Huawei's enterprise products will help Huawei in cloud computing, Huawei's deputy chairman Guo Ping...
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