Unisplendour Corporation Limited, a subsidiary of Tsinghua Holdings, will acquire a 51% stake in H3C from Hewlett-Packard for at about USD2.3 billion.

The transaction is expected to close at the end of 2015 and it is still subject to the approvals of Unisplendour's board of directors and related government authorities.

According to the agreement signed by the two parties, the new H3C includes H3C Technologies and HP's China-based server, storage and technology services businesses, which are valued at about USD4.5 billion (net of cash and debt). If the transaction is approved, the new H3C will become a leading provider of converged infrastructure solutions and technical services in the Chinese market. The company will offer comprehensive enterprise IT solutions, covering network, server, storage, and technical services, to Chinese clients.

On the completion of the acquisition, new H3C will be HP's exclusive provider of servers, storage and networking, as well as hardware support services in China. Meanwhile, the core management teams of the original H3C and HP's China-based server, storage and technology services businesses will be maintained.

The new H3C's operating revenue in 2014 financial year was about USD3.1 billion and its operating profit was USD400 million. The company has about 8,000 employees, including 2,500 engineers, and over 5,700 patents.

Unisplendour is listed in China's A-share market and it is a software supplier and system integrator in China. The company formed a long-term channel partnership with HP in 1999.