UTStarcom Press Release, 7/01/08
Networking solutions provider UTStarcom (Nasdaq: UTSI) has announced that it will sell its Personal Communications Division (PCD) to a newly formed entity controlled by AIG Vantage Capital, for approximately USD 240 mln. In addition, UTStarcom could receive up to USD 50 mln based on a 3-year earn-out provision. UTStarcom's PCD business primarily distributes handsets and related accessories in North America.
The new entity will be known as Personal Communications Devices, and UTStarcom, through its handset division, will continue to design and provide devices to be sold in the North American market through the new company. UTStarcom will also sell devices directly to carriers in other parts of the world.
The sale is seen as a move by UTStarcom to focus on its core IP-based product offerings, as was the recently announced sale of its mobile solutions business unit.