According to the Israeli financial newspaper Calcalist, Huawei has acquired Toga Networks, an Israeli company's IT company, with a transaction price of more than $100 million.
The report quoted research firm Zirra as saying that the deal was worth about $150 million. If the specific conditions of the transaction can be met, the transaction price may also rise.
Toga's main business is to provide "technical research and high-level IT and telecom market solutions": providing advanced technology research and high-level design for the IT and telecom markets, including switches and routers. Toga has also expanded its business to include cloud storage systems and data center applications.
According to foreign media, VentureBeat contacted Toga Networks and Huawei, but has not received any comments from a company.
Huawei and Toga Networks have long been considered to have a cooperative relationship, although the exact details of the cooperation are not completely clear.
Earlier, the Wall Street Journal said that in the past seven years, Huawei has developed storage and information security, including encryption and other software and network equipment related technologies through a local Israeli registered company called Toga Networks.
According to a former Toga employee's statement and public patent records, Huawei has listed several patents on deep packet inspection algorithms since 2013, and the employees named Toga are inventors. Former Toga employees revealed that more than 200 Toga engineers are now working for Huawei. In addition, Toga has been regarded as a division of Huawei among Israeli government documents, Israeli officials, and Toga's current and former employees.
However, Toga previously responded in an email: "Toga is a private company that does not publicly provide any information about business activities and customer relationships."
At the same time, Huawei said that the Toga network is not a Huawei subsidiary, but Huawei will cooperate with a number of research partners. A Huawei spokesperson said in an email: "Huawei believes that the industry needs to develop and open innovation is the key, so we work with local partners to make better use of local talents and provide the most innovative and leadership to our global customers. s solution."
Huawei and Toga cooperate to touch sensitive US issues?In the past few years, Chinese technology giants have established relationships with Israeli technology industry. In addition to Huawei, Alibaba, Baidu and Xiaomi have invested in Israeli venture capital or new ventures. It is understood that in 2015, China is Israel's third largest export destination, second only to the United States and the United Kingdom.
However, the U.S. review of the transfer of Israeli technology to China has become stricter, in order to worry that these technologies may be used as detection and eavesdropping global network and telecom users, and the technology development of Toga and Huawei may touch this sensitive background. As early as 2000, the United States prevented Israel from selling Phalcon, an advanced airborne early warning system.
In addition, a US Congressional report in 2012 believed that the use of Huawei's network equipment would cause information to be used for China's espionage. Therefore, Huawei's network equipment was almost completely rejected from the US market (not to be seen? Huawei's mobile phone in the US market) Occupy only 0.4%). In addition, according to a former Israeli official familiar with the matter, as the Chinese company's operations in Israel are becoming more widespread, the move also raised doubts about the US national security circle, and the US Department of Defense refused to respond.
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