Proxim Corp. on Monday announced plans to acquire the 802.11 wireless LAN equipment business of Lucent Technologies Inc. spinoff Agere Systems Inc., including the Orinoco product line, for $65 million in cash.
Under the terms of the agreement, Proxim, of Sunnyvale, Calif., will acquire Ageres access point business.
Agere, of Allentown, Pa., will retain its 802.11/Wi-Fi chips, modules and cards business. The company completed its spinoff from Lucent on June 3.
The two companies also announced a three-year supply agreement under which Agere will provide WLAN components to Proxim and Agere technology will continue to be used in the Orinoco product line. In addition, the deal includes a cross-licensing agreement that settles the litigation that had been pending between the two companies--Agere sued Proxim last year, claiming patent infringement.
Officials at both companies said the transaction should be done within 60 days.
Warburg Pincus and Broadview Capital Partners are investing a total of $75 million in Proxim to finance the acquisition, officials said.
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