LONDON (02/23/2000) - The deal for Japanese electronics maker Kyocera Corp. to buy the CDMA (Code Division Multiple Access) standard-based phone business from Qualcomm Inc. has been finalized, Qualcomm announced yesterday.
The sale of Qualcomm's terrestrial-based wireless, consumer phone business to Kyocera, which includes phone inventory, manufacturing equipment and customer commitments, was announced last December. [See "UPDATE: Qualcomm to Sell CDMA Phone Op to Kyocera," Dec. 22, 1999.]Terms of the deal were not disclosed though Qualcomm said in December that it would take a pretax charge of about US$30 million for the first quarter of fiscal 2000.
Specifically the sale was made to Kyocera Wireless Corp. (KWC), the subsidiary of Kyocera International Inc., which is in turn the U.S. holding company for Kyocera Corp., the company said in a statement.
As part of the agreement, for the next five years Kyocera will buy the majority of its CDMA chipsets and system software from Qualcomm, Qualcomm said.
Qualcomm's newly formed subsidiary, QCP Inc., will also contract with Kyocera to support the Japanese company's phone business for three years, Qualcomm said.
Qualcomm, in San Diego, can be reached at +1-858-587-1121, or at http://www.qualcomm.com/. Kyocera, headquartered in Kyoto, Japan, can be reached at http://www.kyocera.com/.