FALLS CHURCH, Va.-Wireless systems providers YDI Wireless Inc. and Terabeam Corp. announced plans to merge. Under the signed agreement, Terabeam will become a wholly owned subsidiary of YDI, focused on providing high-capacity wireless systems to telecommunications carriers.
YDI provides point-to-point and point-to-multipoint microwave radio systems and high-capacity point-to-point millimeter wave (MMW) systems, while Terabeam provides broadband wireless systems using high-frequency MMW and free space-optics technologies.
“This combination makes sense in today’s telecom market,” said telecom analyst Jeff Kagan. “The two companies’ wireless products complement each other well, and the combined company will have more scale and financial strength.”
The agreement calls for the combined company to be managed by the current YDI management team, including Robert Fitzgerald, chief executive officer of YDI, to serve as CEO of the combined company. The new board of directors will include four YDI designees and three Terabeam designees, including Dan Hesse, Terabeam’s current chairman and CEO.
The acquisition is expected to close in the second or third quarter of 2004.
