Government // Mobile & Wireless
04:04 PM
Don't Miss The All Analytics Academy: Analytics for All - A Right Start
Jun 07, 2016
Whether your organization is considering the use of big data and analytics, or has taken its first ...Read More>>

Qualcomm Takes Stake In Pantech

The tech company will be acquiring about 15% of the handset maker after agreeing to a debt-to-equity conversion agreement worth about $76 million.

Qualcomm will be taking up to a 15% stake in handset-maker Pantech after agreeing to absorb more than $76 million in debt.

The deal is a debt-to-equity agreement that impacts both Pantech and Pantech & Curitel Communications. Qualcomm will be a passive investor with no participation in the management of the companies, or their boards of directors. Qualcomm said it will be contributing support with components, software, and technology. This could potentially lead to devices that have strong integration with Qualcomm's Brew platform.

The companies said deal should help Pantech expand its market share in South Korea and in other markets. The equity exchange will take place over a number of months, and there would be unspecified closing conditions.

"Qualcomm is committed to supporting its valued customers as well as the overall wireless industry in Korea and worldwide," said Dr. Cha Young Koo, senior VP and president of Qualcomm Korea, in a statement. "This conversion will create a stronger platform on which Pantech can continue to build its prior successes in developing unique and innovative products."

Pantech is the third-largest handset maker in Korea behind global giants Samsung and LG Electronics. Despite the global recession that has taken a bite out of the mobile phone industry, Pantech has been able to record eight consecutive quarters of profitability.

The company produces multiple mid-level cell phones and feature phones for the likes of AT&T and Verizon Wireless. Pantech said it will soon also launch smartphones for the two largest mobile operators in the United States, as well as a slate of messaging phones.

InformationWeek has published an in-depth report on smartphone security. Download the report here (registration required).

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Register for InformationWeek Newsletters
White Papers
Current Issue
2016 InformationWeek Elite 100
Our 28th annual ranking of the leading US users of business technology.
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.