TEL AVIV, Israel-Point-to-multipoint broadband wireless equipment providers BreezeCom Ltd. and Floware Wireless Systems Ltd. announced they plan to merge in a stock-for-stock transaction.
Under terms of the merger agreement, each ordinary share of Floware will be converted into 0.767 ordinary shares of BreezeCom.
The new company will be renamed and have approximately 53.3 million shares outstanding, with the current BreezeCom shareholders owning 55 percent and Floware shareholders owning 45 percent.
Based on closing prices on April 4, the new company will have a pro forma market capitalization of about $330 million and more than $220 million in cash.
“Bringing together BreezeCom and Floware makes great sense strategically, financially and culturally. Our two companies have significant complementary strengths … ,” said Zvi Slonimski, president and chief executive officer of BreezeCom, who will become co-CEO of the new company, focusing on sales, research and development and operations.
The new company will have product offerings with transmission frequencies ranging from 2.4 GHz to 26 GHz.
