HP agreed to sell its 51% stake in H3C, along with its own HP Server, Storage and Technology Services Businesses in China, to Tsinghua Holdings Subsidiary for approximately $2.3 billion, valuing the total business at $4.5 billion (net of cash and debt).
The companies said that by combining H3C with the HP’s China-based server, storage and tech services businesses, will create a technology powerhouse in China with a market-leading portfolio that will be #1 in networking and a leader in servers, storage and technology services. The new H3C will have approximately 8,000 employees and approximately $3.1 billion in annual revenue. Once the transaction closes, the new H3C will be the exclusive provider for HP’s server, storage and networking portfolio, as well as HP’s exclusive hardware support services provider in China, customized for that market.
HP said it sees continued long-term growth opportunities in China, and HP China will maintain 100% ownership of its existing China-based Enterprise Services, Software, HP Helion Cloud, Aruba Networks, Printing and Personal Systems businesses.
“HP is making a bold move to win in today’s China,” said Meg Whitman, Chairman and CEO, HP. “Partnering with Tsinghua, one of China’s most respected institutions, the new H3C will be able to drive even greater innovation for China, in China. The combined company will build upon an extensive and valuable patent portfolio, best-in-class products and customer focus, and Tsinghua’s world-class research capability. In one move, we have repositioned HP and H3C to accelerate overall performance and better serve our customers and partners.”
