Metawave to buy privately-held Adaptive Telecom
From biz.yahoo.com
Tuesday September 5, 10:35 pm Eastern Time
Metawave to buy privately-held Adaptive Telecom
REDMOND, Wash., Sept 5 (Reuters) - Wireless equipment maker Metawave Communications Corp (NasdaqNM:MTWV - news) said on Tuesday it planned to acquire privately held Adaptive Telecom Inc, a developer of smart antenna technology, in a stock deal valued at just over $115 million.
Under the terms of the agreement, being structured as a pooling of interests, Adaptive Telecom shareholders and optionholders will get 5.5 million shares of Metawave common stock. This gives the deal a value of about $115.2 million based on Metawave's closing price of $20-15/16 on Tuesday.
The transaction is expected to close by the end of the third quarter, Redmond, Washington-based Metawave said.
Metawave said the purchase would let it speed up its deployment of adaptive array smart antenna systems for 3G, or third generation, wireless networks to boost voice and data capacity by over 200 percent, solidifying its position in the wireless infrastructure marketplace.
The acquisition expands Metawave's portfolio of smart antenna products by leveraging the technologies of the two companies, which are both implementing CDMA (code division multiple access) smart antennas.
Campbell, California-based Adaptive Telecom specialises in increasing network capacity for wireless carriers. Its 3G compatible adaptive smart antenna technology is embedded into base station equipment to provide low cost implementation of adaptive smart antennas for wireless communication systems.
Adaptive Telecom CEO Albert Jordan, formerly a key player in the CDMA infrastructure products area at Lucent Technologies, will become a senior vice president and general manager at Metawave. He will be responsible for the development and deployment of Metawave's adaptive smart antenna products.
Adaptive Telecom's headquarters and employees will remain in California as a product development facility for Metawave's adaptive smart antenna technology, Metawave said. |
