STXN acquires Plessey Wireless - CC is on now!
Stratex Networks to Acquire Plessey Broadband Wireless
Thursday September 11, 4:15 pm ET
Acquisition Gives Stratex Networks the Most Complete Portfolio of Licensed And License-Exempt Microwave Radios
SAN JOSE, Calif., Sept. 11 /PRNewswire-FirstCall/ -- Stratex Networks, Inc. (Nasdaq: STXN - News), one of the world's leading solutions providers for high- speed wireless transmission, today announced the signing of a definitive agreement to acquire Plessey Broadband Wireless, a division of Tellumat. The transaction is scheduled to close on October 1, 2003, subject to customary closing conditions.
With Plessey Broadband Wireless, Stratex Networks acquires a leading license-exempt telecommunications-grade microwave transmission product line. Complementing Stratex Networks' current licensed product portfolio, the Plessey product line will provide customers the flexibility and convenience of using one supplier for both licensed and unlicensed products in planning and implementing networks.
The asset purchase agreement provides for payment to Tellumat of $3 millon in Stratex Networks' stock and up to $3 million in cash. The cash amount is dependent upon the audited value of the net assets at the time of closing.
"We have been impressed by customer reaction to the Plessey license-exempt product line since we began selling it under a private-label agreement earlier this year," said Charles Kissner, Chairman and Chief Executive Officer of Stratex Networks. "With this acquisition, we believe that our worldwide infrastructure and sales channels, combined with this innovative product line and development team, will enable Stratex Networks to significantly grow our worldwide presence in the license-exempt transmission market. Importantly, we can now directly support the growing reseller network for this product line, especially in North America. Finally, the acquisition will expand our growing physical presence in the sub-Sahara Africa market, an area of strong growth for Stratex Networks."
Plessey Broadband Wireless is located in Cape Town, South Africa, where Stratex Networks intends to continue its operation. Stratex Networks already has facilities in Johannesburg.
According to Ian Masson, Divisional Managing Director, Plessey Broadband Wireless Division, "Our license-exempt products have been gaining momentum due to their unique features and leading technology. Sold through a number of channels worldwide, our experience with Stratex Networks has been particularly positive despite the relatively short period of the private label agreement. We believe that by combining with Stratex Networks we will be able to provide a uniquely powerful approach to a truly global customer set."
The Plessey product line is available in 2.4 and 5.8 GHz license-exempt bands and currently provides interfaces including 10 Base-T bridged Ethernet and up to 8xE1 or 8xT1. The product line offers the ability to upgrade capacity through software, drastically reducing the number of hardware options required. This full-featured system also contains a frequency spectrum analyzer providing the ability to identify the existence of frequency interference. With the rapidly increasing use of these license-exempt bands, this provides for excellent quality of service.
A conference call with company management will follow this announcement at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Investors are invited to listen to the call live via the Internet at stratexnet.com . Investors can listen via telephone by dialing 877-543-9372 domestic or 706-643-3737 international and entering conference identification number 2767754. A telephone replay using the same conference identification number will be accessible at 800-642-1687 domestic or 706-645-9291 international beginning approximately two hours after conclusion of the live call. The Internet link and telephone replay will be available for a period of two weeks following the conference call. |
