Proxim Corp., which provides Wi-Fi and broadband wireless access solutions, has agreed to sell substantially all of its assets to Moseley Associates Inc.
The agreement calls for Moseley to buy and assume most of the domestic and foreign operations of Proxim for $21 million. The price is subject to certain adjustments and deductions, said the companies.
As part of the deal, Proxim will file for Chapter 11 bankruptcy, and the sale will be subject to court confirmation and overbidding procedures.
Moseley also has agreed to provide Proxim with bridge financing in the principal amount of up to $6.2 million, to be offset against the purchase price. Proxim stockholders are not expected to receive any proceeds from the sale.
Proxim will become a wholly owned subsidiary of Moseley. Other subsidiaries of Moseley include Microwave Data Systems, Axxcelera Broadband Wireless and CarrierComm, all of which Moseley has acquired within the past five years. The company offers wireless solutions in a variety of bands, including point-to-point and point-to-multipoint applications for 200 MHz to 38 GHz.
Proxim has suffered financial setbacks in the past several months, including a recent delisting warning from the Nasdaq Stock Market Inc. The company warned in May that bankruptcy might be its only option, and earlier this year, it retained Bear, Stearns & Co. to help it explore its strategic options.