Marvell Signs Definitive Agreement to Acquire UTStarcom's System-On-Chip Division
SANTA CLARA, Calif. and ALAMEDA, Calif., Dec. 21 /PRNewswire-FirstCall/ --
UTStarcom, Inc. (Nasdaq: UTSI), a global leader in IP-based, end-to-end
networking solutions and services, and Marvell(R) (Nasdaq: MRVL), the leader
in development of storage, communications, and consumer silicon solutions,
today announced a definitive agreement for Marvell to purchase substantially
all of the assets of UTStarcom's semiconductor design business division,
including the assets related to UTStarcom's acquisition of Advanced
Communications Devices Corporation in December 2001.
UTStarcom's semiconductor design business is primarily focused on
developing wireless communications solutions including 3G wireless application
technologies and silicon solutions for Personal Handyphone System (PHS)
'We are very pleased to enter into this agreement and look forward to
further strengthening our relationship with UTStarcom,' stated
are very excited to have this strong engineering team join the Marvell family
as well as greatly expand our growing operations in
Under the terms of the definitive agreement, Marvell will purchase
substantially all of the assets of UTStarcom's System-on-Chip semiconductor
business division for
close within sixty days following the satisfaction of regulatory requirements
and other customary closing conditions. Additionally, in accordance with the
definitive agreement, Marvell may pay an additional
defined milestones being achieved. Upon closing, Marvell may record a
one-time charge for purchased in-process research and development expenses.
The amount of that charge, if any, has not yet been determined.
'This divestiture is consistent with the corporate restructuring plan
announced earlier this year which is focused on streamlining our business to
our strategic handset and system level core competencies and better aligning
the company's resources with industry trends and sales opportunities in the
UTStarcom, Inc. 'We believe that this transaction will allow us to maintain
the cost benefits enabled by our internal development of ASIC chip design by
leveraging the proven semiconductor capabilities of Marvell.'
About UTStarcom, Inc.
UTStarcom is a global leader in IP-based, end-to-end networking solutions
and international service and support. The company sells its broadband,
wireless, and handset solutions to operators in both emerging and established
telecommunications markets around the world. UTStarcom enables its customers
to rapidly deploy revenue-generating access services using their existing
infrastructure, while providing a migration path to cost-efficient, end-to-end
IP networks. Founded in 1991 and headquartered in Alameda, California, the
company has research and design operations in the
For more information about UTStarcom, visit the company's Web site at
Marvell is the leader in development of storage, communications and
consumer silicon solutions. The Company's diverse product portfolio includes
switching, transceiver, communications controller, wireless, and storage
solutions that power the entire communications infrastructure, including
enterprise, metro, home, and storage networking. As used in this release, the
terms 'Company' and 'Marvell' refer to Marvell Technology Group Ltd. and its
subsidiaries, including Marvell Semiconductor, Inc. (MSI), Marvell Asia Pte
Ltd (MAPL), Marvell
Ltd. (MIL), Marvell U.K. Limited, Marvell Semiconductor
RADLAN Computer Communications Ltd., and SysKonnect GmbH. MSI is
on behalf of MIL and MAPL. MSI may be contacted at 408-222-2500 or at
Safe Harbor Statement Under the Private Securities Litigation Reform Act
This release contains forward-looking statements based on projections and
assumptions about our products and our markets. Words such as 'anticipates,'
'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' 'may,'
'will,' 'should,' and their variations identify forward-looking statements.
Statements that refer to, or are based on projections, uncertain events or
assumptions also identify forward-looking statements. These statements are
not guarantees of results and are subject to risks and uncertainties. Some
risks and uncertainties that may adversely impact the statements in this
release include, but are not limited to, the risk we may not realize the
anticipated benefits of the acquisition or the anticipated benefits of the
products and technology, the strength of our future relationship with
UTStarcom, the timing of the completion of the acquisition and risks
associated with acquisitions, including the ability to successfully integrate
the acquired technologies or operations, potential diversion of management's
attention and our ability to retain key employees of acquired businesses. For
other factors that could cause Marvell's results to vary from expectations,
please see the sections titled 'Additional Factors That May Affect Future
Results' in Marvell's annual report on Form 10-K for the fiscal year ended
no obligation to revise or update publicly any forward-looking statements.
NOTE: Marvell(R) and the Marvell logo are trademarks of Marvell. All
other trademarks are the property of their respective owners.
This release includes forward-looking statements, including the foregoing
statements regarding the impact of the divestiture and relationship with
Marvell on UTStarcom's efforts of corporate restructuring, including its
efforts to streamline its business to strategic handset and system level core
competencies and align its resources with industry trends and sales
opportunities in the market, the anticipated cost benefits in chip design
associated with continued relationship with Marvell, the anticipated timing of
the completion of the divestiture, and the expectation that UTStarcom's
relationship with Marvell will continue. Additionally, words such as
'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,'
'estimates,' 'may,' 'will,' 'should,' and their variations identify
forward-looking statements. These statements are forward-looking in nature
and subject to risks and uncertainties that may cause actual results to differ
materially. These risk factors include rapidly changing technology, the
changing nature of global telecommunications markets, the direction and
results of future research and development efforts, evolving product and
applications standards, reduction or delays in product deployments, general
adverse economic conditions, and trends and uncertainties such as changes in
government regulation and licensing requirements. UTStarcom also refers
readers to the risk factors identified in its latest Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as filed
with the Securities and Exchange Commission.
SOURCE UTStarcom, Inc.