CAMPBELL, Calif.-Wireless product provider P-Com Inc. will acquire fixed wireless broadband solutions provider Speedcom Wireless Corp. for 67 million shares of P-Com common stock and the assumption of some liabilities of Speedcom, including $3 million in subordinated debt.
In addition, P-Com is undertaking a recapitalization that includes converting certain convertible subordinated notes into shares of common stock, eliminating certain liabilities and $10 million in long-term debt, and completing an equity financing transaction through which P-Com should receive proceeds between $5 million and $7 million. P-Com expects to complete the recapitalization within the next 30 days.
“This acquisition is a positive step that broadens our spread-spectrum product line and our distribution capabilities, positions us to secure necessary working capital and is consistent with our ongoing consolidation strategy,” said George Roberts, P-Com’s chairman. “This acquisition and recapitalization will help P-Com better meet the needs of customers and compete in the current operating environment.”
