Uncategorized Cell Phone Digest | 01 Jul 2008 07:30 pm
UTStarcom Sells Handset Business for US$240
UTStarcom, Inc., today announced that it has reached an agreement to sell its Personal Communications Division ("PCD") for approximately US$240 to a newly formed entity controlled by AIG Vantage Capital, a part of AIG Investments. In addition to the cash consideration, UTStarcom could also receive up to US$50 million based on a three-year earn out provision. The transaction, which is expected to be completed within two business days, has been unanimously approved by UTStarcom's board of directors and is subject to customary closing conditions including debt financing. Completion of the transaction is not subject to UTStarcom shareholder approval and the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act has expired. The divestiture of PCD is consistent with UTStarcom's strategic focus announced in late 2007, which is aimed at maximizing UTStarcom's opportunities in its core IP-based product offerings in rapidly growing economies around the world. |  |