Wireless broadband solutions company Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) today announced that it has completed the acquisition of WiFi company Wavion. Alvarion reported the acquisition agreement on November 2 2011.
The acquisition was for $30 million in cash.
Alvarion said that acquisition enables it to further leverage its years of experience providing carrier-grade solutions to create a unique combination of multi-technology capabilities which can be optimized for various types of networks and applications.
Alvarion president and CEO Eran Gorev said, “The acquisition of Wavion will enable us to address the market for carrier-grade WiFi, one of the fastest growing segments of telecom equipment, with advanced technology designed specifically to serve the most demanding applications of both public and private networks.”
He added, “We are pleased that we were able to close the acquisition quickly and will focus on rapid integration to leverage our combined strengths. We continue to expect the acquisition to be accretive to non-GAAP earnings beginning in Q2 of 2012.”
Nochi Dankner's venture capital arm Elron Electronic Industries Ltd. (Pink Sheets: ELRNF; TASE: ELRN) held a 67% stake in Wavion and will reportedly receive $18 million from the sale.
Alvarion's share price was down 1.6% on the TASE this afternoon at NIS 3.27. The share price closed on Nasdaq yesterday at $0.84, giving a market cap of 52.34 million.
Published by Globes, Israel business news - www.globes-online.com - on November 24, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011