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3Com Sells Division to UTStarcom

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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.

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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.

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