In a press release today, UTStarcom has announced the sale of its Personal Communications manufacturing and mobile phone development division to an investment group controlled by AIG while retaining the current executive leadership for a total of $240 million in cash which is subject to market adjustments. The newly formed company will also have an additional $50 million profit earn out provision in place if the company generates profits within three years with the primary transaction expected to be complete on July 3rd.
The new company will be known as Personal Communications Devices, LLC and the current executive team will also become part-owners along with AIG Vantage Capital and other unnamed investors.
The new company will continue to focus on handset development in the US through the Handset division while working with other ODMs in order to distribute and provide outside sales support for manufacturers and carriers.
