ALAMEDA, California, United States-In a cash transaction valued at US$100 million, UTStarcom will purchase some of the assets of the CommWorks division of 3Com.
The deal, which the companies expect to close within 120 days, calls for UTStarcom to acquire contracts, agreements, licenses, leases, patents, intellectual property and capital items, which include accounts payable and receivable.
CommWorks is a major player in cdma2000 Packet Data Serving Nodes, and it has deployed softswitches, media gateways, remote access servers and applications worldwide, the companies said. UTStarcom said it accounted for 70 percent of all softswitch ports shipped globally during the fourth quarter of last year.
“Acquiring the CommWorks assets will allow UTStarcom to add to its base of tier-one customers and accelerate its geographic diversification outside of China, said Hong Lu, president and chief executive officer (CEO) of UTStarcom.
After the CommWorks acquisition closes, UTStarcom said its sales footprint will include offices in the United States, Canada, Mexico, South America, the United Kingdom, Ireland, Germany, China, Taiwan, Japan, Korea, Vietnam, India and the Philippines.
