Proxim (NASDAQ:PROX)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Proxim Charts. Click Here for more Proxim Charts.](/p.php?pid=staticchart&s=N%5EPROX&p=8&t=15)
Proxim Corporation Announces Agreement to Sell Substantially All
Assets to Moseley Associates, Inc.
Ensures continued delivery of Wi-Fi and broadband wireless access solutions
SUNNYVALE, Calif., June 11 /PRNewswire-FirstCall/ -- Proxim Corporation
(NASDAQ:PROX), a leading provider of Wi-Fi and broadband wireless equipment,
announced today that it has entered into an asset purchase agreement whereby
Moseley Associates, Inc. will acquire substantially all assets of Proxim.
Under the agreement, Moseley will acquire and assume most of the domestic and
foreign operations of Proxim for a purchase price of $21 million, subject to
certain adjustments and deductions. The sale will be implemented through
Proxim's filing of a chapter 11 bankruptcy case in the United States Bankruptcy
Court for the District of Delaware and subject to court confirmation and
overbidding procedures. In connection with the sale, Moseley also has agreed to
provide Proxim with bridge financing in the principal amount of up to $6.2
million, to be offset against the purchase price. Under the terms of the
transaction as contemplated, no proceeds of the sale are expected to be
distributed to Proxim stockholders.
The contemplated acquisition by Moseley would be expected to preserve most of
Proxim's operations. Moseley and Proxim believe there are significant synergies
and advantages to the combination of their businesses. Proxim's focus on Wi-Fi,
WiMAX and broadband wireless access for enterprises and service providers has
resulted in solutions for the mobile enterprise, last mile access, metropolitan
area networks, public safety, and voice and data backhaul. Combining Proxim's
offerings with Moseley's diversified global product lines will enable Moseley
to offer an expanded and differentiated portfolio of wireless products covering
spectrum from 200 MHz to 38 GHz.
"This proposed acquisition is a continuation of our strategy to be a global,
diversified and profitable leader in the wireless marketplace," said Jamal
Hamdani, president and chief executive officer of Moseley. "Proxim's pioneering
leadership in license-exempt technologies and the 802.11 a, b, and g wireless
access marketplace will significantly enhance our product portfolio. Proxim's
strong global distribution channels and understanding of low-cost manufacturing
will accelerate our growth and fortify our position as one of the industry's
preeminent suppliers."
"Our principal post-acquisition focus will be to earn the trust and respect of
Proxim's customers, suppliers, partners, and employees," continued Mr. Hamdani.
"We intend to fully support all of Proxim's existing customers and product
warranties. Our plan includes providing an invigorating and exciting work
environment for Proxim's employees as well."
Moseley was ranked for the past three years on the Deloitte Technology Fast
500, a ranking of the 500 fastest growing technology companies in North
America. From 1999-2003 the company grew 529%. Upon completion of the
transaction, Proxim will be a wholly-owned subsidiary of Moseley, joining
Moseley's subsidiaries Microwave Data Systems, Axxcelera Broadband Wireless and
CarrierComm, all acquired within the past 5 years. The combined company will
have revenues approaching US $200 million.
About Moseley Associates
Moseley is an ISO 9001 company with offices in Santa Barbara, California;
Rochester, New York; China; United Kingdom; and Brazil. Distributors and agents
in over 100 countries augment Moseley's 300 employees, including over 100
engineers. Moseley has more than 800,000 ETSI-, FCC-, Anatel-, IC-, UL-, and
CE-approved radios deployed in over 120 countries. Profitable for each year of
its operation, Moseley has grown from revenues of US $8 million and EBITDA of
$1 million in 1996 to revenue of over US $90 million and EBITDA of $20 million
in 2004.
Moseley and its wholly owned subsidiaries Microwave Data Systems (2000
acquisition), Axxcelera Broadband Wireless (2001 acquisition), and CarrierComm
(2002 acquisition) now offer wireless solutions from 9.6 kbps to 311 Mbps
covering the 200 MHz to 38 GHz spectrum for both point-to-point and
point-to-multipoint applications for the broadcast, industrial, broadband
enterprise, and service provider marketplaces.
Moseley uses proprietary technologies with more than 200 patents of its own.
Moseley's products are built at many of its own world class manufacturing
facilities in the United States. Extensive HALT and HASS processes are used to
ensure best in class quality. For more information about Moseley, please visit
Moseley's web site at http://www.moseleysb.com/ .
About Proxim
Proxim Corporation designs and sells wireless networking equipment for Wi-Fi
and broadband wireless networks. The company is providing its enterprise and
service provider customers with wireless solutions for the mobile enterprise,
security and surveillance, last mile access, voice and data backhaul, public
hot spots, and metropolitan area networks. This press release and more
information about Proxim can be found on the Web at http://www.proxim.com/ .
Safe Harbor
This press release contains forward-looking statements, as that term is defined
in the Private Securities Litigation Reform Act of 1995. These forward-looking
statements include the Company's expectation regarding the results of its
bankruptcy filings and the consummation of an asset sale with Moseley and are
subject to risks and uncertainties that could cause actual results to differ
materially. These risks and uncertainties include, but are not limited to:
decisions and actions of the bankruptcy court, developments in and effects of
the bankruptcy process, including the possibility of Proxim's failure to meet
conditions to the closing of the transaction and that Proxim might file Chapter
7 bankruptcy protection in the event that neither the transaction with Moseley
nor any competing offers are available, Proxim's operating and financial
performance, including degradations of performance leading to purchase price
adjustments, Proxim's need for financing during and through the bankruptcy
process and the risk that the financing provided in connection with the
contemplated transaction will be insufficient, the risk that Proxim's
customers, vendors, suppliers and employees will react negatively to the
transaction or the context of the transaction and other risks and uncertainties
associated with Proxim's business, Moseley's business and the bankruptcy
proceedings. For additional information regarding risks relating to Proxim's
business, see Proxim Corporation's Form 10-K for the year ended December 31,
2004, Form 10-Q for the quarter ended April 1, 2005 and current reports on Form
8-K, and other relevant materials filed by Proxim with the Securities and
Exchange Commission. Proxim assumes no obligation and does not intend to update
these forward-looking statements.
DATASOURCE: Proxim Corporation
CONTACT: Susan Trout of Proxim Corporate, +1-408-542-5366; or Liz
Atesman of Moseley Associates, Inc., +1-805-968-9621
Web site: http://www.proxim.com/
http://www.moseleysb.com/