Press Release 2002
January 16, 2002 - Proxim & Western Multiplex to Merge, Creating Wireless Networking Solutions Leader
Proxim, Inc. and Western Multiplex Corporation today announced that they have signed a definitive merger agreement in which the two companies have agreed to combine in a merger of equals.
Jonathan Zakin, Chairman and Chief Executive Officer of Western Multiplex, will retain his position with the combined company. David King, Proxim’s Chairman and Chief Executive Officer, will become President and Chief Operating Officer.
The boards of directors of Proxim and Western Multiplex have each unanimously approved the merger. Under the terms of the agreement, each outstanding share of Proxim common stock will be converted into 1.8896 shares of Western Multiplex common stock. The merger is intended to qualify as a tax-free reorganization. Upon completion of the merger, Proxim stockholders and Western Multiplex stockholders will each own approximately 50% of the combined company.
The combined company will keep the Proxim name and trade under the ticker symbol PROX. Headquartered in Sunnyvale, California, Proxim will be the only company offering comprehensive and integrated end-to-end wireless networking solutions for mobile wireless backhaul, fiber extension and redundancy, enterprise wireless LAN and campus networking, last mile access and home networking.
Combined pro forma revenues for the company were $222 million for the twelve months ended September 30, 2001. Combined market capitalization, based on current market valuation as of January 16, 2002, is approximately $550 million. The company will have approximately 485 total employees, including 174 research and development staff.
"We are clearly excited about the ability of our two world-class companies to leverage each other’s customers, sales channels, product portfolios and core technologies," said Jonathan Zakin, Chairman and CEO, Western Multiplex. "Proxim’s strength in OEM and US distribution channels and Western Multiplex’s strength in service provider and enterprise channels will result in industry-leading wireless networking solutions for a diversified, blue-chip customer base."
"Proxim has a long history of being first to market with leading edge wireless technologies," said David King, Chairman and CEO of Proxim. "The merger with Western Multiplex will expand the breadth of our wireless expertise and increase our economies of scale. Our goal is to utilize our development assets to provide integrated last mile access and in-building distribution for the enterprise and residential markets. We believe the range of products and the markets served by this combination will be unparalleled in the wireless industry."
The transaction is subject to customary closing conditions, including regulatory approvals and the approval of the stockholders of both companies. Ripplewood Holdings LLC and its affiliates, the majority stockholders of Western Multiplex, have agreed to vote all of their shares in favor of the merger. The transaction is expected to close during the second calendar quarter of 2002.
About Western Multiplex
Western Multiplex Corporation makes wireless equipment that connects networks between buildings. The company's products offer higher bandwidth, faster installation and lower cost compared to wire lines and fiber. The company's Tsunami™ brand includes point-to-point wireless Ethernet bridges with capacity of up to 430 Mbps, as well as point-to-multipoint systems with capacity of up to 60 Mbps. Western Multiplex also makes wireless equipment for cellular backhaul and other telco applications under its LYNX® brand, which includes Multiple T1/E1 and DS3 wireless links. For more information, visit