WAYNE, N.J. Broadband wireless equipment developer Airspan Networks has purchased Israel-based ArelNet for $8.7 million, a move that will allow the WiMAX equipment developer to increase its support for voice-over-IP (VoIP) services.
Airspan has developed 802.16-based WiMAX equipment for both licensed and unlicensed operators worldwide. ArelNet, on the other hand, has focused its attention on developing switching and gateway systems for VoIP networks. Once the transaction is complete, Airspan plans to integrate ArelNet's VoIP equipment with its radio equipment to support the delivery of VoIP services over WiMAX links.
Under terms of the deal, Airspan paid $4 million in cash and $4.7 million in shares for ArelNet. Completion of the transaction is subject to Airspan's completion of due diligence, the execution of definitive documentation, approval of ArelNet's shareholders and the District Court of Tel Aviv, and customary third-party and regulatory approvals.