Terabeam pays $28 million for Proxim
Wireless broadband equipment vendor Terabeam Wireless yesterday agreed to buy substantially all the assets of Proxim for $28 million in a deal that is expected to close next week.
The asset purchase agreement was forged after Terabeam was declared the winner of an auction to buy Proxim in a court-approved auction conducted in conjunction with Proxim’s Chapter 11 bankruptcy filing. Officials for the companies indicated that the agreement would usurp the $21 million deal announced last month that would have resulted in Moseley Associates buying Proxim, according to multiple media reports.
“This is a great opportunity for Terabeam as well as for our respective customers and employees” Terabeam CEO Robert Fitzgerald said in a prepared statement. “We will be able to offer best-of-breed wireless solutions in virtually every arena, from Wi-Fi through wireless gigabit Ethernet.”
Terabeam, which merged with YDI Wireless last year, plans to move its headquarters to Proxim’s San Jose, Calif., facility and will continue to develop Proxim’s wireless LAN, broadband wireless, and WiMax products. The merged company also plans to pursue opportunities in the mesh-networking arena, according to a joint press release.