Huawei's latest acquisitions for continued growth
28/06/2019
Diego Gutiérrez
Huawei's latest acquisitions for continued growth

Huawei has made headlines in most newspapers and news outlets in recent weeks, ever since the US decided to officially ban the use of network equipment from Chinese manufacturers, saying they pose a security risk. This decision culminated in May, when President Donald Trump decided to officially place Huawei on a trade blacklist that prohibits the company from procuring components from US firms without prior approval.

Despite the setback this move has caused Huawei, the Chinese company has not ceased its expansion plans and continues to announce new handsets, launch new promotional campaigns and enter new sectors with high growth potential.

HUAWEI

It was founded in 1987 as a distributor of imported PBX products (telephone exchange directly connected to the public telephone network to handle internal calls), and two years later started its own production and sales. Over time, it began to launch its own telephone terminal equipment, and in 1996 it took its first steps outside China.

Through different agreements with other companies such as IBM3Com, Siemens or Symantec, Huawei is carving out a niche for itself in the telecommunications market and is now recognised as the world's third-largest smartphone manufacturer, after Apple and Samsung.

Latest acquisitions Huawei's strategy for further growth:

VOCORD

Vocord is a Russian company developer and manufacturer of security systems based on machine vision and intelligent algorithms. Specialising in facial recognition technology, the purchase included technology patents and part of the company's development team.

The deal was concluded in about $50MIt will help Huawei to leverage its technology and add new features to future handsets.

HEXATIER

Israeli startup that offers security and compliance solutions for databases, especially when they are hosted in the cloud. With several rounds of investment behind it, it had managed to expand internationally.

In order to make databases more secure and ensure regulatory compliance in their use, especially in cloud environments, Huawei paid $42M to take control of Hexatier.

NEUL

Neul is specialising in the development of low-power sensors for monitoring all types of industrial and medical scenarios.. This British startup was instrumental in developing the technology for the first smart road designed to control traffic flow and avoid different types of traffic.

With the acquisition agreed in about $25MIn the future, Huawei is committed to offering its customers a variety of solutions and products optimised for the Internet of Things.

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