UTStarcom divests handset business, focuses on other projects
UTStarcom announced today that it is selling its handset business to a group of private investors for $240 million. The investors plan to take the company and form a new one under the name ‘Personal Communications Devices.’ The newly formed company will continue to manufacture cellular phones, and will retain most of the leadership; they will be part owners of the company. Should the new company be successful, UT Starcom could earn another $50 million over three years.
In a statement, UTStarcom said the sale will allow it to focus on its core IP-based products. The transaction, pending regulatory hurdles, will be completed in two days.
[via PhoneScoop]
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