SAN JOSE, Calif.-Wireless mesh router maker Wave Wireless Corp. and wireless broadband technology developer WaveRider Communications announced plans to merge, saying the combined company will focus on the rapidly growing market for wireless broadband solutions.
The companies said the proposed merger will bring together Wave Wireless’ SPEEDLAN family of 2.4 GHz, 4.9 GHz and 5.8 GHz mesh networking products and WaveRider’s non-line-of-sight, fixed and mobile wireless 900 MHz products.
The companies said WaveRiders’ CEO Charles Brown and CFO T. Scott Worthington will retain their positions in the combined company. The newly combined company will include three board members from WaveRider and three from Wave Wireless, plus one newly appointed independent member.
“The proposed combination will result in a broad product offering that serves a large and diverse mix of customers throughout the world,” Brown said. “This will position the merged company to address multiple market opportunities with its enhanced service offerings and product portfolio, which will include fixed wireless, mesh and mobile wireless products for multiple applications serving the WISP, telecommunications, government, Homeland Security and safety and surveillance markets.”
The companies said that they expect to complete the proposed merger in the first quarter of next year. Under the terms of the agreement, the combined company’s stock will be split between WaveRiders’ and Wave Wireless’ stockholders.
“With the substantial cost savings resulting from the proposed merger, the new company will be well-positioned to expand sales and marketing initiatives, achieve near-term profitability and increase shareholder value as it capitalizes on the accelerating demand for robust, high-speed wireless connectivity solutions,” said Dan Rumsey, CEO of Wave Wireless.
