PROVIDENCE – Rhode Island-based Providence Equity Partners is one of two private equity firms that have joined forces to bid for a stake in the mobile devices business of Chinese manufacturer Huawei Technologies, Reuters reported last week.
The report, based on sources in the process, said the firm Silver Lake is teaming with Providence Equity Partners in auction that could attract a price as high as $2 billion.
Another pair of U.S. private equity firms is also interested in placing a bid, Reuters said.
Silver Lake was among five firms that made it through the first round of the Huawei auction, sources said. Bidders are believed to be reviewing financial documents, and another round of offers is expected in a next few weeks.
All the firms mentioned declined to comment.
Privately owned Huawei hired Morgan Stanley in May to sell a majority stake in the unit that manufacturers mobile handsets, data cards for laptops and routers for home use. An American partner in the United States could help Huawei improve its presence in the country.
Huawei’s mobile devices unit doubled revenue last year to more than $2 billion, sources told Reuters.
A $2 billion deal with Huawei would be the fifth largest cross-border deal involving the purchase of Chinese business interests on record, and the largest so far this year, according to Reuters.
Providence Equity Partners Inc. is a global private investment firm based in Providence, with offices in New York City, Los Angeles, London, Hong Kong and New Delhi, that specializes in media, entertainment, communications and information companies. It has raised $21 billion through seven funds since its founding in 1989. Additional information is available at www.provequity.com.
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