Check Out Huawei's Recent $150 Million AcquisitionChinese technology giant Huawei has reportedly snapped up Toga Networks, an Israel-based company that provides “advanced technology research and high level design for the IT and Telecom markets,” in a deal worth more than $100 million.
Local Israeli business publication the Calcalist reported on the news (in Hebrew) early this morning, citing figures from research firm Zirra that peg the deal at around $150 million, though this could rise if certain conditions are met.
Huawei and Toga Networks have long been known to be in collaboration, though the exact nature of the partnership hasn’t been entirely clear. Some reports from earlier this year suggested that Toga could actually be a Huawei subsidiary, however both companies poured cold water on that notion.
“Toga Networks is a private company,” a company spokesperson told the Wall Street Journal in June.
“It doesn’t provide to the public any information concerning either its business activities or its connections with clients.”
Huawei also added that Toga Networks wasn’t a subsidiary, but was using the company as a research partner. “Huawei believes open innovation is the key to the development of the industry,” a Huawei spokesman said.
Toga Networks is seemingly designing and developing a range of products for the telecom industry, including switches and routers, while it has also branched out into cloud-storage systems and applications for data centers.
So it’s entirely in line with Huawei’s line of business Huawei is, after all, the world’s biggest telecom equipment vendor in terms of revenue, out-pacing rivals such as Ericsson and Cisco.