UTStarcom sells off its handset division
UTStarcom sells off its handset division, and will be reformed into the Personal Communications Division.
UTStarcom announced earlier today that it will sell its Personal Communications Division to a part of AIG Vantage Capital for approximately $240 million plus $50 million based on a three-year earn out provision. UTStarcom states in its news release that it is focusing more of its efforts on its core IP-based product offerings and the PCD business will be cordoned off as its own standalone company. The new company will be known as Personal Communications Devices (Still PCD, get it?) and will be taking over UTStarcom's mobile device distribution, though UTStarcom's handset business unit will continue to design and provide handsets and accessories for PCD to distribute. Sounds like consumers won't see too much of a change as far as UTStarcom handsets go, but it'll be interesting to see how the future of the company's devices shape out now that the two divisions are separate.