MDS’ parent company to buy Proxim’s assets for $21 million
Microwave Data Systems (MDS) recently reported that its parent company, Moseley Associates Inc., plans to purchase Proxim Corp.
Microwave Data Systems (MDS) recently reported that its parent company, Moseley Associates Inc. , plans to purchase Proxim Corp. Located in Rochester, NY, MDS manufactures industrial, wireless, networking solutions with applications in the supervisory control and data acquisition (SCADA), public safety, automation, telecommunications, and online transactional markets. Proxim provides Wi-Fi and broadband wireless equipment.
Proxim’s focus on Wi-Fi, WiMax, and broadband wireless access for enterprises and service providers has produced solutions for mobile enterprise, last-mile access, metropolitan area networks, and voice and data backhaul. Moseley reports that combining Proxim’s offerings with its product lines will enable Moseley to offer an expanded and differentiated portfolio of wireless products covering the 200 MHz to 38 GHz spectrum.
"This proposed acquisition is a continuation of our strategy to be a global, diversified and profitable leader in the wireless marketplace," says Jamal Hamdani, Moseley’s president and CEO. “Proxim’s pioneering leadership in the 802.11 a, b, and g wireless access marketplace will significantly enhance our product portfolio, enabling MDS and the other Moseley companies to offer customers in every market the most complete solution.”
Moseley will acquire and assume most domestic and foreign operations of Proxim for $21 million, subject to certain adjustments and deductions. The sale will be implemented through Proxim’s filing of a Chapter 11 bankruptcy case in U.S. Bankruptcy Court for the District of Delaware and is subject to court confirmation and overbidding procedures. 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.
Consequently, under terms of the transaction, proceeds of the sale aren’t expected to be distributed to Proxim’s shareholders. However, the planned contemplated acquisition by Moseley is expected to preserve most of Proxim’s operations.
—Jim Montague, news editor, Control Engineering, email@example.com