Triton Network Systems plans to purchase IBM's broadband modem family in exchange for 5.5 million shares.
The provider of broadband wireless network products will also hire about 50 of Big Blue's employees. The unit, which is part of IBM's Microelectronic division, develops and sells custom modems for use in the company's hardware systems.
As part of the transaction, Triton will obtain both intellectual property and engineering expertise for future modem development, which the company claims will lower its product manufacturing costs.
Brian Andrew, Triton's president and chief executive, said the supplier's products are aimed at competitive local exchange carrier and local multipoint distribution services licensees, and at Canada's local multipoint carrier service networks.
He claimed that the range includes technology to enable communications service providers to install more units in a service area than would be possible with other broadband wireless technologies.
The firm recently filed an initial public offering for up to $75m (£47m) and said it plans to use the net proceeds for general corporate purposes.
Founded in 1997, Triton has received more than $40m in funding. It uses communications technology developed by Lockheed Martin for use in the Persian Gulf War and received more than $192m worth of research and development funding from Lockheed Martin for use in monolithic millimeter wave integrated circuit technology.
The company is developing millimetre wave radios that can push OC3 (155Mbps) and OC12 (622Mbps) traffic to corporate campuses.
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