Hewlett Packard Enterprise Closes Transaction With Tsinghua Holdings 

PALO ALTO, Calif., May 4 -- Hewlett Packard Enterprise (NYSE: HPE) today announced it closed a transaction with an affiliate of Tsinghua Holdings to create New H3C Group, the leading Chinese provider of technology infrastructure headquartered in Hangzhou and Beijing.

Per the agreement, Tsinghua Holdings subsidiary, Unisplendour Corporation, through a wholly-owned affiliate, purchased a 51% stake in New H3C, comprising H3C Technologies and HPE's China-based server, storage and technology services businesses, for approximately $2.3 billion (net of cash and debt). HPE plans to return the vast majority of the cash to shareholders through opportunistic share repurchases.

New H3C offers customers a complete portfolio of enterprise IT solutions, including networking, servers, storage, hyper-converged systems, and IT management products. As the exclusive provider for the Chinese market, New H3C also provides a full range of HPE branded servers, storage and technology services. HPE has a 49% ownership stake in the new company and Arun Chandra, Senior Vice President & COO of HPE's Enterprise Group, will serve as Chairman of New H3C.

"Combining the strengths of HPE and Tsinghua, one of China's most respected institutions, New H3C will build upon an extensive and valuable patent portfolio, best-in-class products and customer focus, and Tsinghua's world-class research capability," said Meg Whitman, President and CEO of Hewlett Packard Enterprise. "With our investment, the Chinese IT powerhouse will deliver strong performance in China, for China and will drive long-term value for our shareholders."

About Hewlett Packard Enterprise

Hewlett Packard Enterprise (HPE) is an industry leading technology company that enables customers to go further, faster. With the industry's most comprehensive portfolio, spanning the cloud to the data center to workplace applications, our technology and services help customers around the world make IT more efficient, more productive and more secure.

Source: HPE