Proxim and Western Multiplex agree to merge

MANHASSET, N.Y. — Proxim Inc. and Western Multiplex Corp. have agreed to combine their companies, bringing Proxim's wireless LAN expertise under the same roof as Western Multiplex's fixed broadband wireless access and backhaul technologies. The combined company, which will retain the Proxim name, will have an end-to-end wireless networking solution for enterprise LANs, campus networking, last-mile access and home networking.

Under the terms of the deal, Jonathan Zakin, chairman and chief executive officer of Western Multiplex, will retain those titles with the combined company. David King, chairman and chief executive officer of Proxim, will become president and chief operating officer.

On the financial side, each outstanding share of Proxim common stock will be converted into 1.8896 shares of Western Multiplex common stock, bringing the total value of the deal to $289 million. Upon completion of the merger, Proxim stockholders and Western Multiplex stockholders will each own approximately 50 percent of the combined company.

Zakin said the deal combines Proxim's strength in OEM and U.S. distribution channels with Western Multiplex's strength in the service provider and enterprise channels. King said the merger will expand the breadth of Proxim's wireless expertise and increase its economies of scale. "Our goal is to utilize our development assets to provide integrated last-mile access and in-building distribution for the enterprise and residential markets," he said.

Western Multiplex's offerings to date include the Tsunami point-to-point wireless Ethernet bridges with capacity of up to 430 Mbits/second, as well as point-to-multipoint systems with capacity of up to 60 Mbits/s. The company also makes wireless equipment for cellular backhaul and other telco applications under its Lynx brand.