Just four years after purchasing its handset division from Audiovox, UTStarcom will sell it to an investment group for $240 million. The newly formed entity, which will be controlled by AIG Investments, will be renamed Personal Communications Devices and will continue to be headed by Phil Christopher.
The agreement includes up to an additional $50 million to UTStarcom over the next three years if certain financial targets are met. The transaction is expected to close in two business days. UTStarcom will retain a 2 percent stake in the company and will continue to sell handsets that it makes to PCD for sale in the Americas.
This deal follows a similar divestiture earlier this month by UTStarcom of its mobile solutions business, which consisted primarily of CDMA products. That unit was sold to OpenGate Capital and was renamed Star Solutions.
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