China-based telecom equipment maker Huawei Technologies’ $2m purchase of corporate venturing-backed 3Leaf Systems is being reviewed by the US government.
The Committee on Foreign Investment in the United States (CFIUS) is scrutinizing Huawei’s deal for server technology firm 3Leaf, which the Chinese telecom gear maker completed in May, for US national security implications, according to newswire Reuters.
3Leaf had raised $55m, including $35m in its September 2008 series C round from Intel Capital, LSI Corporation and venture capital firms Alloy Ventures, Enterprise Partners Venture Capital and Storm Ventures.
William Plummer, Huawei’s vice president of external affairs, told Reuters: "Huawei voluntarily invited CFIUS review of this transaction.
"Huawei cannot speculate about the possible outcome, but be assured Huawei is comfortable having any transaction in the United States reviewed by the US government so we can demonstrate our commitment to transparency."