Beverly Hills, California, United States
UTStarcom (NASDAQ:UTSI) announced that it has reached an agreement to divest its Mobile Solutions Business Unit ("MSBU") to OpenGate Capital, LLC. OpenGate's managing partner Andrew Nikou stated, "This is a very positive step for OpenGate Capital. The transaction between OpenGate and UTStarcom is indicative of our cross-border and buy-and-build strategy. Our ability to mobilize and execute this transaction clearly demonstrates our experience in dealing with complex carve-outs and divestitures of divisions from Fortune 1000 companies such as UTStarcom. With operations in Canada, the United States, India and China, MSBU represents a great footprint in our global organization." Jack Mar, who has over 30 years of experience in the telecommunications industry, will continue his role as President of the newly acquired company to be rebranded as Star Solutions. The transaction is expected to close in approximately three weeks.
The Mobile Solutions Business Unit is responsible for the development, sales and services of wireless IP-based products that connect a cellular infrastructure to an IP network. OpenGate partner Jay Yook stated, "Working in conjunction with the management team at Star Solutions, we are confident that we can exceed the demands of the market and serve its customers with nothing less than the full resources of the company. Star Solutions and UTStarcom will continue to maintain a business relationship and will continue to work together to ensure the growth and prosperity of the company."
About OpenGate Capital:
OpenGate is an opportunistic private equity firm that acquires companies and divisions of companies from all over the world. Established in 2005, OpenGate Capital has a global presence with headquarters in Beverly Hills, CA, and a principal office in Paris, France.
For more information on OpenGate Capital, please visit our website at www.opengatecapital.com.
Source: Business Wire (Business Wire India)