UTStarcom is selling its Personal Communications division (PCD) to an investment operation. The company will realize about $240 million from the sale.

Much of UTStarcom’s growth has come from IP networking and IPTV. PCD’s main line of business, meanwhile, is making and selling mobile handsets. The sale of PCD follows UTStarcom’s divestiture of its Mobile Solutions unit to OpenGate Capital, announced on June 9.

The buyer of PCD is a new entity created and controlled by AIG Vantage Capital, a part of AIG Investments. Beyond the $240 million, UTStarcom could receive up to $50 million more based on a three-year earn out provision.

The resulting company will be called Personal Communications Devices. It will be privately held, and it will be led by PCD’s current management team, who will be part owners of the company with AIG Vantage Capital and other investors.

The transaction is expected to be completed within two business days. It is not subject to UTStarcom shareholder approval, and the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act has expired.

The sales of both divisions were telegraphed late in 2007 when UTStarcom said it would concentrate on its opportunities in its core IP-based product offerings.

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