3Com Sells Division to UTStarcom
From Reuters
3Com Corp. said it has agreed to sell its telecommunications equipment business to UTStarcom Inc. for $100 million in cash and would focus on making equipment for corporate and institutional networks.
Santa Clara, Calif.-based 3Com said the deal would free it to go after more complex and higher-margin deals.
UTStarcom President and Chief Executive Hong Lu said the CommWorks acquisition would place the company in new markets outside China.
Before the deal was announced, shares of 3Com rose 10 cents to $4.29 on Nasdaq. UTStarcom, based in Alameda, Calif., fell 55 cents to $18.67, also on Nasdaq.
