Terabeam Wireless will purchase nearly all assets from bankrupt Proxim Corp., the two Wi-Fi and broadband wireless equipment vendors have announced. Terabeam will continue to drive the Proxim brands and expects a seamless transition for Proxim's customers, channel partners, employees and suppliers.
Terabeam was the high bidder in a court-approved auction following Proxim's Chapter 11 bankruptcy filing, offering close to $28 million. The agreement will supersede Proxim's earlier agreement to sell to Moseley Associates.
The transaction is subject to final approval by the US Bankruptcy Court for District of Delaware and is expected to close on or before July 29.
Terabeam will move its headquarters to Proxim's San Jose facility and will assume responsibility for Proxim's ongoing sales as well as for support of the Proxim product lines through the combined company's worldwide distribution channel.
“This is a great opportunity for Terabeam as well as for our respective customers and employees," says Robert Fitzgerald, CEO at Terabeam. "We will be able to offer best-of-breed wireless solutions in virtually every arena, from Wi-Fi through wireless gigabit Ethernet. We have always been very impressed by Proxim's distribution system, and we look forward to expanding on their strong channel partnerships. We look forward to bringing together two energetic organizations and believe that we can accelerate product development and our position in the market while maintaining the financial discipline to achieve profitable operations."
