Huawei buys out Symantec in joint venture

Hong Kong-based Huawei Symantec makes storage and network appliances with security

Huawei Technologies will buy out the rest of a joint venture with Symantec for US$530 million, the companies announced on Monday.

The venture, based in Hong Kong, was formed in 2008 to integrate Symantec storage and security software into appliances built with Huawei's telecommunications equipment expertise. Symantec owns 49 percent of Huawei Symantec Technologies, while Huawei holds 51 percent.

After the sale, which is expected to close in the first quarter of 2012, Symantec will receive royalties from Huawei for seven years for the technologies it contributes to the appliances. Symantec will still maintain its own business in China, which includes two research and development centers, and its own appliance business, said Enrique Salem, Symantec's CEO, on a conference call Monday. The few Symantec employees who worked for the joint venture itself will move to other parts of Symantec, he said.

Huawei Symantec Technologies entered the U.S. market late last year with the Oceanspace S2600 and N8300 storage platforms and the Secospace USG2000, a network gateway including switching, routing and security features.

In the companies' press release on Monday, Huawei said it would continue to invest in the venture.

The companies held extensive discussions and decided it would be best to consolidate the venture under one owner, Salem said.

"If we were going to continue to grow that business and be more competitive in the global market, it would have required us to continue to increase our investments and Huawei to increase their investments," Salem said. Instead, it was in Symantec's best interest to invest in other areas of its business, such as mobile and cloud computing, he said. There also were issues on which the partners saw differently, he added.

Symantec made money on its original investment of $150 million in the venture. But in the six months ended Sept. 30, the company reported a tax benefit from losses by the venture, according to a U.S. Securities and Exchange Commission filing.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Topics: business issues, Huawei Technologies, symantec, security, storage, investments, restructuring
Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Compare & Save

Deals powered by WhistleOut
WhistleOut

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?