MENLO PARK, Calif.-Wireless infrastructure equipment provider interWave Communications International Ltd. signed a definitive agreement to acquire all of the outstanding shares of Microcellular Systems Ltd.
The acquisition is expected to enhance interWave’s strategic position to capitalize upon emerging opportunities in wireless office and the wireless Internet, according to the company.
“The team at Microcellular Systems has been a strong supporter of our products in the market since early 1997 when it was a part of ADC [Telecommunications],” said Dr. Priscilla Lu, chairman and chief executive officer of interWave. “With their team, we shall be able to accelerate our market expansion in the wireless corporate network market and capture the opportunities at hand.”
Microcellular will receive $5 million in cash and be issued 555,556 shares of restricted unregistered common stock from interWave in exchange for all of its outstanding shares. Microcellular also will receive an additional $2.5 million in incentives if the company reaches minimum thresholds of fiscal 2001 revenue.
Through the acquisition, interWave also gains a 20-percent equity interest in Propylon Ltd., an Irish corporation focused on delivering Wireless Application Protocol software for the enterprise environment.
