Florida-based Airspan Networks (Nasdaq:AIRN), which provides fixed wireless DSL networks, yesterday announced that it was acquiring from UK telecom equipment provider Marconi all outstanding shares in its Israeli wireless unit, for $3 million in cash.
Marconi Communications (Israel) Limited, which employs 60 workers at its facility in Lod, develops broadband wireless access systems known as Wireless Internet Protocol Local Loop (WipLL). The division shipped $2.8 million of equipment in the third quarter of 2002, Airspan said.
Marconi bought the unit from Israeli company RDC Communications for $39 million in 1998. By selling the unit, Marconi has abandoned Israel, a year after it sold its Haifa-based medical equipment unit Marconi Medical Systems to Royal Philips Electronics (NYSE: PHG; AEX: PHI).
The deal is subject to final approvals by Israeli government authorities, which is expected in the fourth quarter of 2002. Airspan expects the purchase will immediately contribute to its operating results.
Airspan president and CEO Eric Stonestrom said, "This acquisition expands our reach as a company substantially, by letting us address a number of growing equipment segments. The acquisition will reinforce our leadership in the international fixed-wireless access marketplace, and diversify our existing sources of revenues."
The WipLL product is a broadband, IP-based wireless local loop communications system, designed to enable operators in licensed and unlicensed bands to offer high speed, low cost, wireless broadband connections for data and voice communications.
To date, more than 15,000 subscriber terminals and more than 1,600 base station radios of WipLL equipment have been shipped to 18 operators in 12 countries. WipLL subscribers receive Internet access and other broadband services from telecom operators and Internet Service Providers (ISPs) such as SpeedNet Inc. of Japan, which currently has more than 12,000 subscribers on the WipLL platform.
Published by Globes [online] - www.globes.co.il - on 2 October, 2002