Tuesday, July 1, 2008

UTStarcom Divests Division

Alameda-based UTStarcom said today that it has agreed to sell its Personal Communications Division to a new company, formed by AIG Vantage Capital, a part of AIG Investments. According to UTStarcom, AIG will pay approximately $240M in cash to the firm for its Personal Communications Division, in addition to up to $50M in earn out. UTStarcom said the spinout is part of its efforts to focus on its core IP-based product offerings. The divestiture is the second for the firm, which also recently divested its Mobile Solutions bUsiness Unit. The new spinout will be called Personal Communications Devices LLC.