TEL AVIV, Israel–(BUSINESS WIRE)–Alvarion® Ltd. (NASDAQ: ALVR), a global provider of optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of public and private networks, has entered into a definitive agreement with Telrad Networks, a leading international provider of innovative telecommunication solutions, pursuant to which Telrad Networks will acquire Alvarion’s carrier licensed division. The consideration in the transaction will be $6.1 million. In addition, Alvarion may receive certain performance-based milestone payments of up to $6 million.
“We at Telrad are very excited to integrate Alvarion’s carrier licensed division as a core growth engine for our business,” said Ran Bukshpan, CEO, Telrad Networks. “We believe that Alvarion’s broadband wireless access portfolio will become a significant building block in Telrad’s future. We are committed to the ongoing innovation of the BreezeCOMPACT family and have plans to continue investing in this platform, including TD-LTE Advanced capabilities. Telrad is dedicated to continue serving Alvarion’s impressive customer base, and we welcome the Alvarion employees who will join the Telrad family as part of this acquisition. Together we can successfully execute the growth plans we have for Telrad.”
Alvarion’s carrier licensed business started over 15 years ago and has amassed extensive commercial, technological and operational experience and know-how. Its most recent product offering – the BreezeCOMPACT family – offers a unique single-box architecture, all-outdoor chassis, small footprint and lower installation costs. The single-box architecture reduces OPEX and CAPEX by providing true macro base station performance in an optimized all-outdoor/all-in-one small form factor. The BreezeCOMPACT is TD-LTE Advanced-ready with a software upgrade. Launched during the second quarter of 2012, the BreezeCOMPACT has been successfully deployed by tier one and tier two operators in Latin America, Eastern Europe and Africa.
“We believe that this transaction is in the best interest of our shareholders, our carrier licensed business, our customers and our employees. Telrad’s intention with respect to future investments, particularly the development of TD-LTE Advanced capabilities for the BreezeCOMPACT, will enable them to offer our customers cutting edge technologies and provide the optimum solutions and service,” said Hezi Lapid, President and CEO, Alvarion. “Following today’s announcement we will now focus our business on carrier-grade solutions in the unlicensed frequencies. This new focus will allow us to concentrate our resources and attention on our target markets and on successfully completing our turnaround plan.”
Alvarion and Telrad Networks have also agreed to sign a reseller agreement according to which Alvarion will continue to provide carrier licensed solutions to its partners and distributors and Telrad will provide Alvarion’s unlicensed solutions to its carrier customers after the transaction is completed.
Consummation of the transaction is subject to certain closing conditions and is expected to occur during the second quarter of 2013.
Yigal Arnon & Co. served as Telrad’s legal counsel and Meitar Liquornik Geva Leshem Tal served as Alvarion’s legal counsel.
