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Proxim Expands Product Offerings with Acquisition of Wavespan Corporation

Strategic Insights

— 1 min read

Proxim, Inc. has announced the completion of the acquisition of privately held Wavespan Corporation, a developer of wireless broadband access solutions. The acquisition will enhance Proxim's industry-leading wireless LAN market position with the addition of complementary building-to-building products and technologies, including 5 GHz wireless bridges delivering speeds of up to 100 Mbps each way with two T-1 voice channels.

Key Takeaways:

  • Proxim acquired Wavespan Corporation for 204,211 shares of Proxim common stock, worth approximately $11.7 million, plus $2.68 million of cash.
  • The acquisition will take a one-time charge of between $4.5 million and $6.5 million for purchased in-process research and development expenses in the fourth quarter of 1999.
  • Wavespan's expertise lies in developing wireless broadband access solutions, including digital signal processing, spectrum-efficient digital modulation, networking protocols, network management software, and flat phased-array antennas.
  • Proxim expects the new high-speed offerings to open up additional building-to-building corporate and carrier business opportunities.
  • Proxim is the world's leading supplier of spread spectrum wireless LAN products to OEMs and wireless solutions providers.
  • Proxim has established itself as a leader in the emerging home networking market with its award-winning Symphony suite of cordless networking products.
  • Proxim is a founding member of the Wireless LAN Interoperability Forum (WLI Forum) and a core member of the Home Radio Frequency Working Group (HomeRF).

Statistics:

  • Proxim acquired Wavespan Corporation for approximately $14.38 million ($11.7 million in stock + $2.68 million in cash).
  • The acquisition will result in a one-time charge of between $4.5 million and $6.5 million for purchased in-process research and development expenses in the fourth quarter of 1999.
  • 204,211 shares of Proxim common stock were exchanged for all outstanding shares, options, and bridge loan obligations of Wavespan, excluding acquisition costs and other operating liabilities.
  • Proxim has established a market share of 37% in the wireless LAN market according to Frost & Sullivan Research.
  • Proxim has established a market share of 33% in the wireless LAN market according to IDC.
  • Wavespan's technology can deliver speeds of up to 100 Mbps each way with two T-1 voice channels.

Sources:

  • Business Wire, "Proxim, Inc. Completes Acquisition of Wavespan Corporation" (December 28, 1999)
  • Proxim, Inc. press release (December 28, 1999)
  • Frost & Sullivan Research
  • IDC
  • Cahners In-Stat Group
  • Wireless LAN Interoperability Forum (WLI Forum)
  • Home Radio Frequency Working Group (HomeRF)

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