Under the terms of the deal, San Jose, California-based Stratex will pay Tellumat up to $3m in cash, plus $3m in stock. The exact amount is dependent upon the audited value of the net assets at the time of closing. The transaction is scheduled to close on October 1, subject to the customary closing conditions.
The deal will give Stratex Networks what it describes as the most complete portfolio of licensed and licence-exempt microwave radio networks.
We have been impressed by customer reaction to the Plessey license-exempt product line since we began selling it under a private-label agreement earlier this year, said Charles Kissner, Chairman and CEO.
With this acquisition, we believe that our worldwide infrastructure and sales channels, combined with this innovative product line and development team, will enable Stratex Networks to significantly grow our worldwide presence in the license-exempt transmission market. Importantly, we can now directly support the growing reseller network for this product line, especially in North America. Finally, the acquisition will expand our growing physical presence in the sub-Sahara Africa market, an area of strong growth for Stratex Networks.
Plessey Broadband Wireless is based in Cape Town, South Africa, where Stratex intends to continue its operation. Stratex also has facilities in Johannesburg.
Source: ComputerWire
