Proxim Sells Out, Part II

By Eric Griffith

July 20, 2005

The acquisition of Proxim announced in June has been superseded by a $28 million dollar bid from Terabeam.

Remember last month when we reported that Moseley Associates of Santa Barbara, Calif. would be making beleaguered Proxim a wholly-owned subsidiary? Forget that.

Today, Terabeam Wireless—the business name of YDI Wireless —said it would be purchasing all of Proxim's assets after it was declared the bid winner in Proxim's Chapter 11 bankruptcy auction. Where Moseley had been ready to pay $21 million, Terabeam's bid is for $28 million.

The acquisition is still subject to approval by the United Sates Bankruptcy Court for the District of Delaware, but Terabeam expects to close the deal by July 29.

Terabeam will move its headquarters into Proxim's San Jose, Calif.- facility.

Terabeam says the company will continue to do product development in WiMax. Proxim previously announced some pre-WiMax gear, as early as November 2004, as part of its Tsunami line of long-distance wireless equipment. Last summer, Proxim said it would work with chip giant Intel on WiMax/802.16 products.

Terabeam was not reachable for further comment on the acquisition at press time.

Originally published on .

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