Wireless firm Proxim sells itself for $21m

Moseley Associates steps in after Proxim Chapter 11 filing

Robert Jaques

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".

Advertisement

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."

  • Have your say
  • Send to a friend
  • Print
  • Digg
  • Reddit
  • Share

Tags:

Do you agree?

Related whitepapers

Related jobs

Most watched

Summit: Salesforce.com on SaaS and information overload

How web services contribute to data headaches

V3.co.uk weekly debrief, 13 Nov 09

This week we discuss the inaugural V3.co.uk Summit

Analysis and Reports

Remote access - Three steps to getting connected

3.4 million UK professionals now work from home – is your company equipped?

Cost benefits of a global collaboration network

This white paper is a must read for organisations looking for evidence of the bottom-line benefits of high-definition video and voice communications

Poll

Impact of Information Overload poll

Impact of Information Overload poll

What is the biggest problem your firm faces as a result of the data explosion?

View poll results

Advertisement

White paper library

Keep up to date with the latest products, services and technologies from the world's leading IT companies; IThound.com brings you over 6,000 white papers, case studies and analyst reports.

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Advertisement

Spotlight

V3.co.uk weekly debrief, 13 Nov 09

This week we discuss the inaugural V3.co.uk Summit

Fingers on keyboard

New Flash vulnerability discovered

Web sites could be vulnerable to Flash attacks

Chris Adams

Summit: Microsoft Office to the rescue

Chris Adams, Office Client product manager for Microsoft UK, explains...

Illegal downloader

Industry and human rights campaigners united in opposition to "three strikes" plan

Critics says government proposals to curb illegal downloading are unworkable...

Primary Navigation