Western Multiplex Corp.
have announced a definitive merger agreement that will create what they bill as the world’s only provider of wireless end-to-end connectivity across LAN and WAN infrastructures. The company will continue to operate and trade under the Proxim name (PROX).
Proxim Inc. makes wireless networking products used by both PC and Macintosh users. An exhibitor at Macworld Expo San Francisco 2002 earlier this month, Proxim makes products that work with the 802.11b standard (also used by Apple’s AirPort devices) as well as HomeRF, a competing standard that recently underwent a revision to provide data transfer speeds more akin to 802.11b. Their products also include high-speed wireless networking products based on the 802.11a standard.
Western Multiplex Corp. makes products that connect networks between buildings. They make point-to-point wireless Ethernet bridges with capacities up to 430Mbps, and point to multipoint systems with capacities of up to 60MBps. The company also produces wireless equipment for cellular backhaul and other wireless telecommunications applications, including multiple T1/E1 and DS3 wireless links.
Calling the transaction a “merger of equals,” the companies indicated that Western Multiplex chairman and CEO Jonathan Zakin would retain his title. Proxim chairman and CEO David King will become president and chief operating officer.
Under the terms of the agreement, which has already been approved by the board of directors at each company, each outstanding share of Proxim common stock will be converted into 1.8896 shares of Western Multiplex common stock. It was noted that once the transaction is completed, stockholders in the two companies will each own about 50 percent of the combined company.
Combined revenues for the company were US$222 million for the year ending September 30, 2001. Proxim said the two businesses have a combined market capitalization of about $550 million. They’ll have about 485 total employees, with 174 of those doing research and development work.
The merger is subject to the customer regulatory and stockholder approvals. The two companies expect to complete the transaction in the second calendar quarter of this year.