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Allen & Overy is advising HP on the creation of a technology powerhouse in China

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Ho Victor
Victor Ho

Registered Foreign Lawyer, Cal

Hong Kong

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Rivlin Ken
Ken Rivlin


New York

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24 June 2015

Allen & Overy has advised Hewlett-Packard Corporation (HP) on the establishment of a new strategic joint venture with Tsinghua Holdings for its converged infrastructure business in China with the sale of a 51% stake in the new H3C for USD2.3bn.

Upon completion, 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 in China.

Building on its track record as a pioneering market leader in China, HP will partner with Unisplendour Corporation (UNIS), a listed subsidiary of Tsinghua Holdings, the asset management arm of Tsinghua University, in a strategic joint venture for its converged infrastructure business in China. Under this partnership arrangement (which is subject to the satisfaction of certain conditions precedent), UNIS will purchase a 51% stake in the new H3C for approximately USD2.3bn, valuing the total business at USD4.5bn.

The new H3C is the latest incarnation of HP's converged infrastructure business, combining HP's market-leading H3C Technologies subsidiary and HP's China-based server, storage, and technology services businesses into a single company. With approximately 8,000 employees and approximately $3.1 billion in annual revenue, the new H3C will be the leading provider of converged infrastructure solutions and technology services in the China market.

UNIS is a PRC A-share traded operating subsidiary of Tsinghua Holdings Co., Ltd., the asset management holding company of the prestigious Tsinghua University. UNIS is one of the top software vendors and system integrators in the PRC, and has been a long-term strategic distribution partner of HP since 1999.

The complex nature of the transaction required Allen & Overy to provide multi-disciplinary and multi-jurisdictional capability to support HP. The team was led by Victor Ho, head of Allen & Overy's corporate practice in Beijing, and supported by Benjamin Bai, who led on intellectual property matters, Gary McLean on English law advice, Franҫois Renard on anti-trust law, Paul McCarthy on employment and equity benefits and Kenneth Rivlin on US regulatory matters. Finance advice was provided by Cindy Lo and Fiona Cumming and associate Karen Ho. Jeffrey Ding of Fangda Partners provided specialist PRC support including A-share expertise.

Commenting on the transaction, , Allen & Overy partner Victor Ho said: "We are very honoured to have advised HP on such a challenging but ground-breaking deal in China. This is a highly strategic business move for HP and is consistent with HP's pioneering history in China. HP's bold and innovative approach could serve as a blue-print for other global technology companies seeking to address the rapid changes and shifts in the PRC technology market including the need for an increased indigenous supplier profile. The transaction combines a range of complex legal and commercial issues which we believe will become more and more common as both international and Chinese technology companies work together to capture the opportunities in the China and the cross-border technology markets."

For further information, please contact Alexandra Quilici in Hong Kong,, +852 2974 7065.