- June 21, 2005
- GE Digital
ROCHESTER, NY (June 21, 2005) – Microwave Data Systems (MDS), a world leader in industrial, wireless, networking solutions with applications in the supervisory control and data acquisition (SCADA), public safety, automation, telecommunications, and online transactional markets, today announced that its parent company, Moseley Associates, Inc., has entered into an asset purchase agreement with Proxim Corporation (NASDAQ: PROX), a leading provider of Wi-Fi and broadband wireless equipment. Proxim’s focus on Wi-Fi, WiMAX and broadband wireless access for enterprises and service providers has resulted in solutions for the mobile enterprise, last mile access, metropolitan area networks, and voice and data backhaul. Combining Proxim’s offerings with Moseley’s diversified global product lines will enable the Moseley family to offer an expanded and differentiated portfolio of wireless products covering spectrum from 200 MHz to 38 GHz. "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 officer of Moseley. “Proxim’s pioneering leadership in the 802.11 a, b, and g wireless access marketplace will significantly enhance our product portfolio, enabling MDS and the other Moseley companies to offer customers in every market the most complete solution.” “MDS is excited about the prospect of offering complimentary products in our Industrial Markets. Where possible we will look to leverage each others strengths to exceed the expectations and needs of our customers,” stated Rick Nozel, MDS’ Vice President of Sales and Marketing. Under the agreement, Moseley will acquire and assume most of the domestic and foreign operations of Proxim for a purchase price of $21 million, subject to certain adjustments and deductions. The sale will be implemented through Proxim’s filing of a chapter 11-bankruptcy case in the United States Bankruptcy Court for the District of Delaware and subject to court confirmation and overbidding procedures. In connection with the sale, Moseley also has agreed to provide Proxim with bridge financing in the principal amount of up to $6.2 million, to be offset against the purchase price. Under the terms of the transaction as contemplated, proceeds of the sale are not expected to be distributed to Proxim shareholders. The contemplated acquisition by Moseley would be expected to preserve most of Proxim’s operations. Executives at both Moseley and Proxim believe there are significant synergies and advantages to the combination of their businesses. About Moseley Associates Moseley is an ISO 9001 company with offices in Santa Barbara, California; Rochester, New York; China; United Kingdom; and Brazil. Distributors and agents in over 100 countries augment Moseley’s 300 employees, including over 100 engineers. Moseley has more than 800,000 ETSI-, FCC-, Anatel-, IC-, UL-, and CE-approved radios deployed in over 120 countries. Moseley uses proprietary technologies with more than 200 patents of its own. Moseley’s products are built at many of its own world class manufacturing facilities in the United States. Extensive HALT and HASS processes are used to ensure best in class quality. For more information about Moseley, please visit Moseley’s web site at www.moseleysb.com. About Proxim Proxim Corporation designs and sells wireless networking equipment for Wi-Fi and broadband wireless networks. The company is providing its enterprise and service provider customers with wireless solutions for the mobile enterprise, security and surveillance, last mile access, voice and data backhaul, public hot spots, and metropolitan area networks. This press release and more information about Proxim can be found on the Web at www.proxim.com. About Microwave Data Systems Microwave Data Systems Inc., headquartered in Rochester, N.Y., designs and manufactures networked high-speed, point-to-multipoint, and medium- and low-capacity point-to-point industrial, microwave radios for use in oil and gas, utility, lottery, traffic monitoring, public safety, and telecommunication provider industries. Learn more about the company at www.microwavedata.com.
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