AUSTIN, Texas — The company that has been the dominant force in the mobile phone business for more than two decades, TCL, announced Tuesday that it will sell its mobile phone and tablet brands for a total of $12,9 billion, a move that will boost profits by $1 billion, while making TCL the biggest single buyer of mobile devices in the United States.
The company, founded in 1961, is owned by United Technologies, which is owned and operated by Microsoft Corp. The deal was first reported by Bloomberg.
In a statement, T-Mobile CEO John Legere said TCL will buy out the remaining assets and build a new company to focus on mobile devices.
T-Mobile will retain a stake in TCL through 2024, TCl’s chairman, John Legester, said in the statement.
The transaction is expected to close in December 2021.
The sale will help TCL expand its portfolio of mobile products, which includes its T-Series and Smartphones, Tabs, Laptops, and Gaming Phones.
It will also give TCL a presence in emerging markets like Brazil, the Middle East, India, Indonesia and China.TCL’s portfolio includes some of the biggest players in the wireless market, including Sprint Corp., AT&T Inc., Verizon Communications Inc. and T-mobile US.
It also includes brands such as BlackBerry Ltd.
and Apple Inc., but the company said that its mobile device portfolio is diversified.
The deal also includes a new mobile phone brand, Tcl Mobile, that will go into service in 2021, and TCL’s TCL Plus brand, which will go in service in 2022.
TCL said that TCLMobile will have access to more than 30 million of its existing customers.
TclMobile will continue to sell its Tmobile brand, and will sell Tcl smartphones.
Legeres added that TclMobile Mobile will continue as a standalone business.
TekSavvy, a leading provider of software for enterprise devices, will continue working on TCL mobile products for the next four years.
TechSavvy’s acquisition of TCL by TCL marks the latest in a string of deals TCL has made over the past few years, and is part of the company’s strategy to increase its presence in the smartphone market.
Tcl launched TCL phones in 2010, with the first smartphone being the TCL-branded TCL Smartphone in November 2011.
T-Cell, which was created by Tcl, was launched in 2012.TECHSavvy acquired TCL in a $2.5 billion deal that included a $1.4 billion buyout of Tcl’s parent company, Siemens AG.
The acquisition included TCL software, TLC-3 software and hardware.
The company also acquired Tcl-branded products, including the T-cell phone.TECSA is a joint venture between the U.S. Department of Defense and TECSA.
It has developed software that provides the ability to remotely control the TEC-20 and TAC-20, or Advanced Combat Aircraft, unmanned aerial systems.
TECDA’s current products include the TACO Global Hawk and the TLC.