Xircom Inc has followed through on the tentative plan announced in June to spin off its Netwave wireless LAN business through a management buyout. The new company, which will be headed by former Xircom chief operating officer and chief financial officer Jerry Ulrich, has been named Netwave Technologies Inc, and gains all of the assets from Netwave, including product inventory, property and equipment, and intellectual property rights. Diversified manufacturing company Technitrol Inc becomes the majority shareholder in the new entity, with the remainder of shares held by the group of around ten Netwave management and staff that formed the buyout team: the companies are not revealing the precise share split, nor are they saying how much money was paid to Xircom as a result of the deal. Although all Netwave wireless LAN products will be sold by Netwave in the Americas, until the end of the year Xircom will continue to market and sell them in Europe and the Asia-Pacific region. According to Ulrich, this is so that the Netwave can initially concentrate on establishing the new company, and building up its business in the US and Canada. Xircom says that as a result of the sale it is expecting to take a one-time charge of five cents per share for the quarter ending September 30.
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