Canadian wireless vendor VCom Inc. said it struck a $1 million cash deal to purchase several subsidiaries of Wave Wireless Corp., including WaveRider Communications (Canada) Inc., WaveRider Communications (USA) Inc., Jetstream Internet Services Inc. and Avendo Wireless Inc.
VCom said it expects the total revenue of the acquired companies to add about $5 million to its fiscal 2007 sales. The company also pointed out that, as part of the acquisition, it will sell under the Wave Wireless name licensed 900 MHz products as well as point-to-multipoint products designed to operate in the 700 MHz, 1.9 GHz, 2.5 GHz, 3.5 GHz and 5.8 GHz bands. The company also plans to grow its WiMAX product line.
In addition, the acquisition of Avendo Wireless supplies VCom with Internet Protocol in the Multiple-input Multiple-output technology arena, while the acquisition of Jetstream will allow its 1,400 Internet subscribers in Salmon Arm, British Columbia, to be added to the network of YourLink Inc., a VCom Internet service provision company.
VCom currently employs about 600 people in Western Canada. The company’s chairman and chief executive officer, Surinder Kumar, said, “This acquisition aligns with VCom’s strategic vision to broaden its technology base with complementary products and develop new sales channels for our products. Acquiring a U.S. corporation will also facilitate VCom’s objective to expand operations into the United States.”
San Jose, Calif.-based Wave Wireless, formerly P-Com Inc., said the sale will allow the company to focus on its core business strategy. The company’s CEO, Charles Brown, said, “With the financial resources realized through these transactions, product development, sales and marketing will be more focused on a number of key growth areas which include the public safety, surveillance and security markets.”
WaveRider Communications Inc., the parent company of WaveRider Canada, WaveRider USA, Jeststream and Avendo, was not part of the transaction. However, Wave Wireless said it will maintain ownership of WaveRider’s intellectual property rights.
According to Scott Worthington, Wave Wireless vice president and chief financial officer, “There were a number of compelling reasons to complete these transactions. Not only do they immediately provide Wave Wireless with additional cash and working capital but will result in reduced future legal, accounting and operating expenses, through a simplified corporate structure.”
Wave Wireless and WaveRider had only recently merged, having announced their plans to join forces in November.
