Want... The corporate arm of China's Tsinghua University announced a joint venture deal with Hewlett-Packard (HP) on computer servers, storage and technology services on May 21.
Under the agreement, Tsinghua Holding's Unisplendour (Tsinghua Unigroup) will acquire a 51% stake in a new company called H3C, taking over HP's servers, storage and technology services in China.
Tsinghua will acquire the H3C stake for around US$2.5 billion, while HP's management teams in China, including those on the H3C venture, will remain largely unchanged.
HP will maintain full control of its enterprise services, personal computer business and other operations in China, while H3C will become the exclusive provider of HP servers, storage and technology services.
"The new H3C will be able to drive even greater innovation for China, in China," HP CEO Meg Whitman said.
Zhao Weiguo, chairman of Tsinghua Unigroup, said H3C will become part of the country's indigenous information technology sector that will help to ensure online security and will see brighter business prospects.
H3C is expected to have some 8,000 employees, including about 2,500 engineers, while its annual revenue is forecast at US$3.1 billion, according to HP.
Tsinghua Unigroup is a listed software and solution provider, which became a strategic distribution partner for HP in China in 1999.
The deal between the two companies is expected to be completed at the end of this year, pending regulatory approval
Poster Comment:
China tapping American research and technology for mutual benefit.