3Com agreed to acquire Huawei Technologies’ 49% Huawei-3Com (H3C) for $882 million, which represents an implied equity value of $1.8 billion.
Under the existing shareholders’ agreement, the parties have agreed that the selling shareholder in the bid process would, under certain circumstances, be subject to a non-compete provision for 18 months after the closing.
H3C said its mission, vision and strategy will remain unchanged after the transaction.
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- November 2006 marks the third anniversary of the founding of the Huawei-3Com (H3C) joint venture, which is registered in Hong Kong with research and development centres in China (Beijing, Hangzhou and Shenzhen) and India (Bangalore).
- On Nov. 15., the company said its first half revenues climbed more than 70 percent over the same period last year with international sales now accounting for one third of all sales. Net sales revenue for the first half of 2006 totaled US$324 million.
- H3C employs 4,800 people with more than half engaged in R&D.