Microwave communications equipment supplier Harris Corp. is beefing up its presence in the local multipoint distribution services market by purchasing Wavtrace Inc., a privately held developer of wireless broadband point-to-multipoint systems.
The agreement provides Harris, which owns approximately 20 percent of Wavtrace, the option to purchase the remainder of the company for $134 million.
The acquisition is the culmination of the Harris/Wavtrace strategic alliance formed in June 1999 to support Harris’ initiative to deliver point-to-point and point-to-multipoint broadband wireless access solutions for microwave and millimeter wave frequencies.
Wavtrace said it was the first to develop a broadband point-to-multipoint system for millimeter wave-based Time Division Duplexing technology, and has patents for many key features of its products.
“We had an early interest in Wavtrace TDD technology because of its efficiencies in transporting high-speed bursts of data traffic and its efficient use of spectrum,” said Phillip W. Farmer, Harris chairman and chief executive officer. “TDD has gained recognition in the industry as the most appropriate technology for LMDS broadband wireless.”
The Wavtrace acquisition follows on the heels of Harris’ acquisition of TRT Lucent Technologies’ point-to-point microwave radio business in France, now called Harris Communication SA. It includes TRT Lucent’s microwave digital link product line covering the 2-38 GHz frequency bands. The line is compliant with European Tele-communications Standards Institute standards, Harris said.
The Lucent acquisition gives Harris a stronger position in Europe, the Middle East and Africa, according to Michel Guay, managing director of Harris Communication.
Indeed, as competition in the wireless broadband market continues to intensify, it is expected more of the smaller, privately held companies will be bought by larger incumbents looking to fortify their product offerings.
Alcatel SA acquired Newbridge Networks Corp. for $7.1 billion in February, a move designed to give Alcatel a greater presence in North America and more internal switching/routing expertise, Alcatel said.
James Mendelson, analyst with The Strategis Group, said for the smaller companies, being acquired is a way to get their technology into the hands of more people. For the larger companies, “It’s a way for them to get into a new, cutting-edge technology,” Mendelson said.
In Harris’ case, Mendelson said the Wavtrace acquisition was “a good move for them. It rounds out their portfolio and it’s a new technology getting a lot of attention.”
Wavtrace introduced its new PTM 2000 product in March, upgraded to better accommodate higher levels of data usage. The PTM 2000 product will become part of Harris’ ClearBurst product line, Harris said.
Wavtrace employs approximately 110 people, including 80 engineers, all of whom will remain in the Bellevue, Wash., facility. Wavtrace will become part of Harris’ Microwave Communications Division, headquartered in Redwood Shores, Calif.
The acquisition is expected to close at the end of August, the companies said.
