UT Starkang "Buy Internationalization"
The annual turnover increased from $ 10 billion in 1998 to $ 2.7 billion (expected), this home relied on Tamaro - this has been considered a telecom business survived in the clip - and gains magical high growth Telecom equipment company, in fact, I have long noticed the risk of business concentration. So in 2003, UT Starka was launched after 3 years of Nasdaq, USA, finally launched a large-scale international merger.
So far, 20 companies acquired by UTS-Decang are not 20, the company's industrial layout has also been dominated from a single China Wireless City market, developed to the international strategic layout in various fields of communications today, and forming broadband , Wireless, terminal three core services. Director of the UT Starcon's Marketing Department and the company's spokesperson Feng Guangshun revealed that UTS-Decang will achieve $ 4 billion in sales income, which will rise to 50% in 2005. This proportion is only 10% in 2001.
Only "Little Lingtong"
Not enough insurance
In 1995, UNITECH Telecom and Starkon Network System Company were merged and officially created UT Starcon. But the company registered in the United States is truly known, and it has created a huge industry named "Little Lingtong" in China and after landing in the NASDAC. On March 3, 2000, UT Star Kang was listed in Nasdaq, which was raised to $ 73 per share.
In the United States, the business is in China's UT Star Kang must face such a reality: 86% of its turnover in 2003 remained from this single market in China, and its internationalization is far from the ideal. UT Starkang has always hoped that through profits received in the Chinese market, this transformation includes both business revenue structures, including business income geographies. Therefore, in 2004, UTS-Decang has unprecedented an ancient primary task, of which the focus of expanding exports is in the broadband area.
At the same time, since 2000 to 2002, this continued downturn in the global telecom market for more than 3 consecutive years, many SMS manufacturers around the world have been in trouble, and some have plans to sell assets. And enjoy the UT Starkang, which is high-speed growth in the small Songtong market, and reserves the strength of the acquisition in the past few years. At this time, by acquiring maturity, companies with complementary technology quickly expand their strength, and become a path choice for UT Starka overseas expansion.
Compared to the two most dangerous competitors of UT Starka in China - ZTE and Huawei, although the last two have ambitious overseas plans, and they have been in the international market for many years, but enter UT Starkang, the international market, is expected to have $ 4.3 billion in turnover in 2005 from the international market. The proportion of international market revenue will reach more than 40%; obviously, UT Starka International market income growth And the scale has exceeded its two competitors. Data also showed that as of the end of 2004, UT Starcon's market covered 33 countries around the world, more than 300 telecom operators were using its products. "In the regional distribution of the international market, the United States and Japan will become the first and second largest overseas markets, and the expected sales revenue of these two markets will reach RMB 12 billion. At the same time, it will be in Europe, Latin America , Africa, Southeast Asia and other markets have made important gains. "Feng Guangshun said.
Wu Eagui's explanation of UT Starka International Market expansion is, "This is benefited from UT Starkan management, because the structure of their management is international."
Go to buy a
CDMA comprehensive solution back
In fact, the UT Starka International Market expands a more important reason Wu Hawn not saying that the international acquisition of UT Starko is still successful.
On March 5, 2004, 3COM announced that its telecommunications equipment department CommWorks was sold to UT Starkang. After spending $ 100 million in cash, UT Starcon successfully won the CDMA2000 PDSN product that CommWork has 60% share in the global market. Moreover, this acquisition further improved the shortcomings of the CDMA2000 in the 3G standard, and also made it immediately gain 17 customers in the world's 20 largest telecom operators. Have Wall Street analysts expect UT Starcon's income of $ 30 million to $ 35 million through acquisition by acquisition of COMMWORKS. Plus the previously acquired PDSN products, UT Starkon is equivalent to acquiring 75% of the global CDMA data network PDSN product market. However, this is only the first step in the UT Starkon global layout.
The second big acquisition was UT Starka acquired the South Korean Modern Group's CDMA equipment supplier Syscomm. Through this acquisition, UT Stari has a CDMA data network, the production capacity of the base station; UT Star Kang has acquired Canada Telos, which is mainly CDMA core network business, and get all IP CDMA softswitch solutions. In June of the same year, UT Starka acquired Audiovox's mobile terminal business at a price of $ 16.5 billion. This not only makes Ut Starcon entering the American CDMA mobile phone market, but also further realizes the diversification of products and markets, and strengthens UT Starcon's technology leadership in the mobile terminal.
"The above acquisition has enabled UT Starcon's product to fully cover the CDMA client and network infrastructure, forming a complete CDMA comprehensive solution," Feng Guangshun said. Wu Eagle's series of acquisitions in UT Starka: "We use the way to use the CDMA technology in the acquisition, we can use CDMA technology to complete end-to-end programs. Moreover, we have also obtained these companies client."
Audiovox
Take only a real value of $ 90 million
In this series of acquisitions, the acquisition of heavyweight is the acquisition of the US Audiovox mobile business in June 2004, and the price of $ 165.1 billion also refreshed the previous UT Starcon's acquisition record. The Audiovox's mobile department mainly sells CDMA mobile phones to telecom operators in North America and other regions. In 2003, its turnover was close to $ 8 billion, and the mobile phone sales were more than 46 million, which fell by half than the peak of 2000.
According to the agreement, UT Starcon is allowed to use Audiovox trademarks on some products within five years. In Wu Ying's view, this not only helps the company to enter the CDMA market in North America as soon as possible, but also from financial purposes, this is also a very cost-effective transaction. The company's own belongings still have $ 40 million in cash on their own books. After the acquisition, the company can enjoy $ 30 million in tax concessions, and the real acquisition cost is only 90 million US dollars. Although the gross profit level of the Audiovox mobile phone business is only 4.7% in 2003, Wu Ehe believes that the company is expected to increase its gross profit margin to 10%.
Wu Hawi said that the above acquisition is required to build a complete CDMA solution. In addition, UT Starcon and Qualcomm signed a commercial license agreement on the patent issue, which means that UT Starkang has been achieved from the system architecture from the core network, base station, terminal, and patent and other CDMA industrial chains. It is called the smooth transition of the 3G era by the small Songtong era. Wu Hawhi's idea is that by 2006, Xiaomingtong accounted for a reduction in the business below 50%.
Who said UT Staron does not do a mobile phone?
UT Starcon's first GSM / PHS dual-mode mobile phone launched in March 2004 has been officially commercially available in Vietnam; and the 2005 international consumer electronics exhibition held in Las Vegas, USA, and UT Starkang The three different positioned CDMA and GSM mobile phones in the North American market - CDM-180, CDM-8615 and SMT5600.
Although it seems that all UT Starkang do everything in these two years, it seems to be working hard to transfer business to the international market. But analysts pointed out that it is necessary to maintain a good cash flow in the short term, and UT Stari will not ignore the Chinese market. It is reported that the UT Stark GSM mobile phone will also log in to the domestic mobile phone market recently. Other related news: Verizon push UT Star Kang first 3G EV-DO mobile phone UT Star Kanna enters Korean judicial disputes UT Starkon 3G program will serve 12 city wireless broadband UT Staroto help India's largest telecommunications BSNL deploying broadband service Wu Ying clarified UT Star Kang Chief Lauded Market is the Ying rain table UT Star Kang sign $ 600 million Small Lingtong network expansion contract Wu Eagle: UT will still grab the light communication market
