Huawei to acquire Symantec stake in JV for $530 mn

Chinese telecom equipment manufacturer Huawei Technologies (Huawei) will acquire Symantec's 49 per cent stake in their joint venture firm, Huawei Symantec Technologies, for $530 million (nearly Rs 2,680 crore).

Upon closing the agreement, Huawei will have full ownership of the joint venture firm, Huawei said in a statement.

"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.

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Looking ahead, Huawei will continue to increase investment in Huawei Symantec, reaffirming its commitment to customers," Huawei Deputy Chairman Guo Ping said.

Huawei Symantec is a Hong Kong-based joint venture company established by Huawei and Symantec in 2008. The company provides customers with innovative security, storage and systems management solutions.

"Huawei and Symantec have mutually agreed that the next stage of growth for the joint venture would benefit from the direction of a single owner," Huawei said.

The agreement is subject to regulatory approvals and other customary closing conditions and is expected to close in the first quarter of 2012. Until the closing, Huawei and Symantec will continue to comply with their commitments under the existing joint venture agreements, the company said.

"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," Symantec President and Chief Executive Officer Enrique Salem said.