UTStarcom has reached an agreement to divest its Mobile Solutions Business Unit (MSBU). The MSBU, which primarily consists of the IP-CDMA business, will be acquired by the global private equity firm OpenGate Capital. UTStarcom will retain the PDSN operations and will work with Star Solutions as an OEM provider. The financial terms of the transaction were not announced.

 "In late 2007, we announced a new strategic focus aimed at maximizing our opportunities in IP-based technologies including IPTV, Next Generation Networks and Broadband," said Peter Blackmore, UTStarcom's chief operating officer. "The sale of our Mobile Solutions business marks one step towards achieving that strategic goal."

Jack Mar, the president of UTStarcom's MSBU stated, "We are pleased to execute this transaction in a way that will cause no disruption to the MSBU's ongoing operations. Star Solutions will continue to develop and offer our unique IP based GSM/CDMA wireless solutions. Importantly, we look forward to continue building upon the existing partnerships with our customers and suppliers as we accomplish the next stage of our growth."

At the same time, the company also announced that Peter Blackmore it to take the helm as the company's chief executive officer, effective July 1, 2008. Blackmore, 61, succeeds Hong Liang Lu, 53, who will become the company's executive chairman of the board.

In addition, UTStarcom disclosed that Thomas Toy, currently chairman of the board, will assume the role of lead director on July 1.

Blackmore joined UTStarcom as president and chief operating officer from Unisys, where he served as executive vice president in charge of worldwide sales, marketing and technology since 2005.

Source:cellular-news