UTStarcom has entered into a definitive agreement to sell its IP Messaging and US PDSN Assets to NewNet Communication Technologies, a provider of text messaging and network signaling offerings for wireless, IP, and wireline networks.
As per the agreement, NewNet will also become a reseller of the UTStarcom core IP-based product portfolio in the North America and Latin American regions. Terms of the agreement were not disclosed and the transaction is expected to close in June of 2010.
In addition, NewNet will continue to service and provide localised support to existing UTStarcom customers. To facilitate this transition, key personnel from UTStarcom will be hired on to the new organisation as a part of the agreement.
Peter Blackmore, chief executive officer and president of UTStarcom, said: “We are pleased to be partnering with NewNet Communication Technologies, which we are confident will provide exceptional localised service to UTStarcom customers as our reseller in the Americas region.
“We feel this indirect sales approach for our core IP-based products will be a more effective and successful go-to market strategy for this region of the world. This agreement further simplifies our operations and is consistent with our stated strategy to maximise UTStarcom’s opportunities in our core IP-based product offerings.”
