Terabeam Wireless to purchase Proxim for $28 million

Terabeam (Falls Church, Va.) and Proxim entered into the purchase asset agreement after Proxim (San Jose, Calif.) declared Terabeam the high bidder in the court-approved auction held in connection with Proxim’s Chapter 11 bankruptcy filing. Terabeam will pay about $28 million, subject to adjustments and deductions, and will be obligated to provide debtor-in-possession financing.

The agreement is expected to supersede Proxim’s earlier arrangement to sell its assets to Moseley Associates.

Proxim has been on tenuous financial footing for months and looking at strategic alternatives.

The combined company is expected to have significant presence in wireless LAN, point-to-multipoint, and point-to-point wireless markets and continue its product development pipeline to address opportunities in the WiMAX and wireless mesh markets.

“We will be able to offer best-of-breed wireless solutions in virtually every arena, from Wi-Fi through wireless Giga-bit Ethernet,” said Robert Fitzgerald, chief executive of Terabeam, in a statement.