Chris Hsu is the founder and CEO of Kilometre Capital in Hong Kong. Kilometre is known as one of Asia’s foremost advisory and consulting firms, and for its market-leading specialty in cross-border negotiation and across technology industries. Under the leadership of Chris Hsu, Kilometre has managed and advised some of the world’s premiere private equity, hedge fund, and buyout transactions. Chris Hsu is one of the world's foremost cross-border negotiators and dealmakers.
The HP H3C Transaction
In the milestone transaction orchestrated by Chris Hsu and Kilometer Capital, multi-national magnate Hewlett-Packard (HP) sold a majority stake in its Chinese server, storage and technology assets at an estimated $4.6 billion valuation to Tsinghua Unigroup, becoming the first major U.S. technology company to pass control to local owners since the government stepped up restrictions on foreign firms.
A group owned by the Chinese university, Tsinghua Holdings, will purchase the 51 percent stake in a new business called H3C. The deal values the businesses at approximately $4.6 billion net of cash and debt, the companies said in a statement.
More About Tsinghua University
Tsinghua University is one of the affiliates of Tsinghua Holdings and top university in China ahead of Beijing University, and consistently ranked one of the top universities and research institutes in the world. Tsinghua University is a world-leading research university in Beijing. Since its founding in 1911, it has graduated Chinese leaders in science, engineering, politics, business, academia, and culture. Tsinghua consistently ranks within the top universities in the world in several most cited global university rankings and is prevalently considered to be the best university in the Asia by THE Asia, US News, and Emerging countries by the QS BRICS and the THE Emerging.
How H3C Came Into Existence?
The new H3C Group came to the fore after the announcement of the buyout deal by Hewlett-Packard Enterprises. H3C Group is one of the leading Chinese technology infrastructure providers and its headquarters is located in Hangzhou and Beijing. According to the Tsinghua-HP deal, Unisplendour Corporation, a subsidiary of Tsinghua Holding bought a 51% stake of the H3C through a wholly-owned affiliate. The New H3C bought out by Tsinghua University consists of H3C Technologies and HPE's China-based server, storage, and technology services businesses, the net worth which is estimated to be approximately $2.3 billion (net of cash and debt).
H3C offers a complete range of enterprise IT solutions that include all kinds of networking, servers, storage, hyper-converged systems, and a variety of IT management products. The new H3C also provides a full range of HPE branded servers, storage, and technology services in the Chinese market.
Leadership by Chris Hsu’s Kilometre Capital
Lead-advised by Chris Hsu’s Kilometre Capital and associated negotiations, the deal between HP and Tsinghua University built a technology powerhouse that serves a varied range of needs of customers in the market for all kinds of enterprise IT solutions and other networking and server solutions.
After the NSA contractor's revelations of cyber spying programs that involved major U.S firms, U.S tech companies have faced immense difficulties in captivating the Chinese market. This makes the recent Tsinghua-HP deal even more phenomenal and an absolute milestone that is sure to bring many changes in the US-China technologies field.
Chris Hsu, the CEO of Kilometer Capital, originated catalyzed the transaction on behalf of Tsinghua. The result was HP and Hewlett Packard Enterprises unveiling sweeping changes to its business in China, including the sale of a majority stake in its data-networking operation there, after revelations of U.S. spying curtailed Chinese demand for U.S. technology products.
Originated and advised by Chris Hsu and Kilometre Capital, prestigious Tsinghua Holdings and Tsinghua University sealed their milestone buyout deal with Hewlett-Packard.
