Marvell to Acquire UTStarcom's Chip Design Unit
December 23, 2005
According to an announcement by Marvell and UTStarcom on Wednesday December 21, the companies have signed a definitive agreement whereby Marvell will acquire the chip design unit of UTStarcom for US$24 million in cash. This figure might eventually increase by US$16 million depending on whether specific targets are met after the acquisition. UTStarcom's unit focuses primarily on 3G and PHS technologies, and it has research and design centers in the United States, India, Korea, and China. Marvell stated that it is especially interested in China, and acquiring the unit will give them an opportunity to expand its business in that region.