UTStarcom agreed to acquire Audiovox Communications’ handset division for $165.1 million in cash.
ACC is a leading wireless handset provider to Tier 1 operators in the US, Canada, and South America, including Verizon Wireless, Sprint PCS, ALLTEL, US Cellular, Bell Mobility, Telus, BellSouth International, Telefonica, Virgin Mobile, MetroPCS, and others.
UTStarcom described the acquisition as a key milestone in its entry into the Code Division Multiple Access (CDMA) marketplace, announced in March 2004. The Audiovox division provides the company with a recognized CDMA handset brand, fully certified for the U.S. market; access to long-standing supply-chain channels; product marketing expertise; and key relationships with top-tier CDMA operators, particularly in North and South America.
Over the past few months, UTStarcom has created a full-solution CDMA business and product line to complements its wireless PAS portfolio. Its activities have included CDMA and WCDMA licensing from Qualcomm, a development partnership with IPWireless for TDCDMA technology, and strategic acquisitions, including Hyundai Syscomm, TELOS, and now ACC.
UTStarcom said it is already the single largest handset provider in China, the largest, and most cost-competitive market in the world. It currently offers more than 30 different handsets, from high-end to low-cost models. The company shipped over 16.5 million units in 2003 and expects to ship between 18 to 20 million in 2004. UTStarcom said the CDMA would extend its position in international markets. http://www.utstar.com
