NEW YORK: Hewlett-Packard announced Thursday it was selling a 51 percent stake in its China-based server business, creating a joint venture with Tsinghua Holdings that will be a sector leader in China.
The US tech giant said it would sell the stake for $2.3 billion, creating a new business called H3C worth $4.5 billion that would be the leader in China in computer servers, storage and technology services.
The deal brings together HP with the investment arm of China's Tsinghua University in a company with some 8,000 employees and $3.1 billion in annual revenue.
"HP is making a bold move to win in today's China," said Meg Whitman, HP's chairman and chief executive.
"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."
HP said the deal would not affect its existing China-based enterprise services, personal computer business and other operations, which would remain 100 percent owned by the California group.
The new H3C will become a subsidiary of Unisplendour, a publicly traded unit of Tsinghua Holdings, the asset management arm of Tsinghua University.
The move comes with HP in the midst of a plan to break itself into two companies, one with a focus on personal computers and printers, and the other on software and enterprise services.
Comments
Comments are closed.