Proxim has been an innovative and interesting company. Always a bit ahead of the herd, its insights include early support for 5 GHz and 802.11a, point-to-multipoint broadband wireless, homeRF, enterprise-wide WiFi AP centralized management and more. Alas, the company's creative, restless spirit has not been matched by commercial success, and it is closing its doors. It has entered into an asset purchase agreement with Moseley Associates, which will acquire substantially all of Proxim's assets. Moseley will acquire and assume most of the domestic and foreign operations of Proxim for a purchase price of $21 million, subject to adjustments and deductions. Moseley will provide Proxim with bridge financing in the principal amount of up to $6.2 million, to be offset against the purchase price. No proceeds of the sale are expected to be distributed to Proxim stockholders.
Under the arrangement, Moseley would be expected to preserve most of Proxim's operations, as both companies believe that there are significant synergies and advantages to the combination of their businesses. Proxim's solution in WiFi, WiMax, and broadband wireless access for enterprises and service providers would fit nicely with Moseley's diversified global product lines and will enable the latter to offer an expanded and more diversified line of wireless products.
Moseley made it to the Deloitte Technology Fast 500 these past three years. Proxim will become a wholly-owned subsidiary of Moseley and will join Moseley's other subsidiaries, which include Microwave Data Systems, Axxcelera Broadband Wireless, and CarrierComm. The combined company will have revenues approaching $200 million.
For more on Proxim's demise:
- see this press release