1st July 2008, 9:34 AM   by Eric M. Zeman   updated Today, 7:41 AM

Today UTStarcom announced that it is selling off its personal communications devices business to a private group of investors for $240 million. The investors are taking the handset business and forming a new company with it, which will be called Personal Communications Devices. It will retain most of the current leadership, who will also be part owners, and continue to design and manufacture cellular phones and other communication equipment. UTStarcom could earn another $50 million depending on the success of the new venture over a three-year period. UTStarcom said the sale will allow it to focus on its core IP-based products. The transaction is expected to be completed within two days, pending regulatory approvals.

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