Karbonn Mobiles plans to purchase a South Korean handset design firm for about $40 million in an all-cash deal, according to news reports. The proposed acquisition is expected to facilitate the company?s plans to market low-cost 3G handsets in Latin America, Africa and South Asia.
It is believed that the deal will be financed with a part of the $250 million that Karbonn expects to garner from private equity firms over the next three months.
The Korean design house will be merged and its 150-member team will work with Karbonn?s team of software developers to chalk out go-to-market timelines for multiple geographies. Handsets designed by the Korean firm will be tested at Karbonn?s software development facility before being shipped overseas.
