by CIO Staff

3Com to Buy Huawei Stake in Joint Venture

Nov 29, 20061 min
Mergers and Acquisitions

3Com has agreed to buy out Huawei Technologies’ stake in a joint venture the two companies founded in 2003 to build networking equipment for enterprises.

3Com said Tuesday it will pay US$882 million for Huawei’s 49 percent stake in Huawei-3Com. Earlier this year, 3Com assumed a majority ownership position in the company.

Huawei-3Com has its headquarters in Hong Kong, but its primary base of operations is in Hangzhou, China.

No details were given on when the transaction is expected to close, but it is subject to approval from the Chinese government.

Huawei-3Com employs just under 5,000 people and is valued at about $1.8 billion, based on the rate that 3Com plans to pay for Huawei’s stake. Last year it sold nearly 2 million switches and routers worldwide, according to the company’s website.

-Robert McMillan, IDG News Service (San Francisco Bureau)

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