Proxim (www.proxim.com) and Agere Systems (www.agere.com) recently announced that Proxim will acquire Agere's wireless LAN business, including the entire Orinoco line of 802.11b wireless LAN products. The parties expect the $65 million deal to close by mid-August.
Under the agreement, Proxim will acquire assets primarily used by Agere in its wireless LAN equipment business. Agere will retain its 802.11/Wi-Fi chips, modules, and cards business, which represents the majority of Agere's total WiFi business.
"This transaction provides the scale, scope, and depth that will allow us to continue our consolidation of the wireless infrastructure business," said Jonathan Zakin, Proxim corporate chairman and chief executive officer.
"In terms of positioning, customer base, technology portfolio, and talent, this acquisition brings Proxim to the forefront of the wireless networking infrastructure business," stated David King, Proxim's president and chief operating officer. "With Orinoco, we obtain market leadership in 802.11b Wi-Fi enterprise network equipment, which complements Proxim's leadership position in 802.11a WLAN solutions."
The two parties also have agreed to enter into a three-year strategic supply agreement under which Agere will provide chips, modules, and cards to Proxim, a license agreement for Agere technology used in the Orinoco business, and a broad patent cross-license agreement for their respective patent portfolios including settlement of the pending patent-related litigation between the two companies.
Ron Black, executive vice president of Agere's client systems group, said the sale will allow his company "to strengthen our relationship with key customers and sharpen our strategic focus on our core Wi-Fi chip business."
