The agreement includes the sale of certain manufacturing assets and inventory to Viasystems.
This announcement is an important step for Metawave in its effort to create a more streamlined manufacturing capability that is efficient, cost-effective and better integrates the company with our suppliers and customers, commented Stuart Fuhlendorf, chief financial officer of Metawave. At the same time, this transaction will have a positive effect on our business model and ongoing working capital. Viasystems is highly respected for their broad experience in telecommunications manufacturing, and we believe this excellent match benefits both our customers as well as Metawave. Viasystems’ global presence and vertical model significantly increase our ability to scale manufacturing operations and better focus our resources on what we do best – designing and developing world-class smart antenna technology and products.
We are delighted to be chosen as the worldwide manufacturing partner of such an important and dynamic company as Metawave, stated James N. Mills, chairman and chief executive officer of Viasystems. Our agreement with Metawave further validates our strategy of gaining market share by providing our customers with a vertically integrated, full-service manufacturing solution on a global basis. Our global presence will enable us to manufacture Metawave’s products in all regions of the world and deliver those products to key markets while meeting Metawave’s production schedule and local content requirements of many emerging markets.
Under the proposed agreement, Viasystems will manufacture Metawave’s products in Redmond, Washington and Taipei, Taiwan. Operations that Metawave currently manages in these regions, including approximately 50 employees, will be transferred to Viasystems over the next 90 days.
SOURCE: COMPANY PRESS RELEASE
