Wireless firm Proxim sells itself for $21m

Troubled wireless networking firm Proxim announced today that it has entered into an asset purchase agreement which effectively sells "substantially all its assets" to networking group Moseley Associates.

Under the agreement, Moseley will acquire and assume most of the domestic and foreign operations of Proxim for a purchase price of $21m, subject to "certain adjustments and deductions".

The sale will be implemented through Proxim's filing of a Chapter 11 bankruptcy protection case in the US Bankruptcy Court for the District of Delaware, and is subject to court confirmation.

In connection with the sale, Moseley also has agreed to provide Proxim with bridge financing in the principal amount of up to $6.2m, to be offset against the purchase price.

However, under the terms of the transaction as contemplated, no proceeds of the sale are expected to be distributed to Proxim stockholders.

Moseley said that the deal "would be expected to preserve most of Proxim's operations".

"This proposed acquisition is a continuation of our strategy to be a global, diversified and profitable leader in the wireless marketplace," said Jamal Hamdani, president and chief executive at Moseley.

"Our principal post-acquisition focus will be to earn the trust and respect of Proxim's customers, suppliers, partners, and employees. We intend to fully support all of Proxim's existing customers and product warranties."