UTStarcom sells CDMA biz, names CEO
UTStarcom said it is selling its mobile phone network business. At the same time, the company promoted Peter Blackmore to CEO.
The company said it is selling its CDMA technology operations to OpenGate Capital, a private equity firm. The value of the deal was not revealed. The unit will be renamed Star Solutions. UTStarcom said it wants to concentrate on IP-based networking.
The company has had limited success outside of its home market of China. It also was embroiled in an accounting scandal that led to its missing quarterly financial reporting deadlines.
Following notice of the accounting problems, CEO Hong Liang Lu offered his resignation, but it turns out he will remain with the company after all, serving as executive chairman of UTStarcom’s board.
Blackmore, who succeeds Lu, has been president and COO since last year. He joined the company from Unisys. He was also appointed to the company’s board.
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