Terabeam Completes Acquisition Of Proxim Corporation
The combined company represents one of the largest pure-play broadband wireless solutions providers, with products including Wi-Fi turnkey indoor and outdoor systems, WiMAX systems, and wireless Gigabit Ethernet solutions. The company will pursue unique applications of its Ricochet wireless mesh networks, and continue to serve the military market with millimeter wave systems through its Terabeam-HXI product line.
Substantially all of Proxim's employees have joined the Terabeam team. Kevin Duffy, formerly Proxim's president and chief executive officer, has become Terabeam's president and chief operating officer. David Olson, formerly Proxim senior vice president of Global Sales and Operations, retains that title at Terabeam. Terabeam believes that this personnel continuation will reduce any disruption felt by its customers, suppliers, and other partners. The company expects to reveal a final corporate branding strategy over the next several weeks. Initial briefings by the company's senior management have resulted in endorsements from major customers and channel partners.
"With the completion of our acquisition of Proxim, some of the most recognizable brands in our industry have joined forces," said Robert Fitzgerald, chief executive officer of Terabeam. "This is a quantum step to allow our customers to provide and enjoy ubiquitous broadband wireless connectivity."
According to Kevin Duffy, president and chief operating office of Terabeam, "This union creates a new force with a powerhouse of talent and technology. The industry can expect us to move quickly to be a formidable player in our key market segments."
"I congratulate Rob Fitzgerald, Kevin Duffy, and the rest of the Terabeam team for developing an aggressive growth plan based on the combination of proven products and partnerships," said Gregory Raskin, president of Winncom Technologies, one of Proxim's and Terabeam's largest channel partners. "Our customers' demands for wireless solutions continue to expand, and we are excited to be able to bring an enhanced product set."
"With our stable financial footing, we believe we can make significant inroads into our competitors' market share while providing broader support to the customers who have continually supported us in the past year," said David Olson, senior vice president of sales for Terabeam.
Terabeam and Proxim entered into an asset purchase agreement for this transaction on July 18, 2005. The asset purchase agreement was approved by the U.S. Bankruptcy Court for District of Delaware on July 20, 2005. Following that approval, the parties addressed the other pre-closing issues and completed the transaction yesterday. Under the terms of the asset purchase agreement, Terabeam acquired and assumed most of the domestic and foreign operations of Proxim for a cash purchase price of approximately $25,200,000, subject to certain adjustments, liability assumptions, and deductions.
SOURCE: Terabeam Wireless