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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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