UTStarcom sells 2 business units as part of years-long restructuringBy AP
Wednesday, May 26, 2010
UTStarcom sells 2 business units
SAN FRANCISCO — UTStarcom Inc. said Tuesday it is selling two business units as part of the company’s years-long restructuring.
The units being sold handle Internet Protocol (IP) messaging and technologies that help cellular networks connect to other networks that use Internet communication techniques.
The buyer for both businesses is NewNet Communication Technologies, which makes text messaging technologies for telecommunications companies. Terms of the deal weren’t disclosed. The deal is expected to close in June.
The announcement is the latest example of UTStarcom’s dramatic makeover.
The company wants to focus now on set-top boxes and other technologies for beaming television signals via Internet-based communications standards. The bulk of its business comes from telecommunications companies in China and India.
UTStarcom’s restructuring over the past few years included the sale of multiple divisions and cutting half the company’s staff, or about 2,300 workers, mostly in China and the U.S., last year.
Tags: Financing, North America, Ownership Changes, Restructuring And Recapitalization, San Francisco, United States