Proxim has acquired Agere Systems' 802.11 wireless local area networking (WLAN) business and Orinoco line in a $65 million cash deal.

Under the agreement, Agere Systems retains the chips, modules and cards business to focus on its core chip business as a chip\OEM supplier, while Proxim acquires Agere's infrastructure products – including the Orinoco brand name – and will source the chips, modules and cards from Agere Systems.

Agere will provide 802.11/Wi-Fi chips, modules and cards to Proxim in a three-year contract. Apple's AirPort works on 802.11 WLAN.

Proxim has also hired approximately 150 Orinoco employees.

The purchase of Orinoco will extend Proxim's position in all wireless infrastructure markets, from 802.11 enterprise LAN and public wireless access, to distributed broadband and carrier-grade wireless backhaul systems, according to Proxim.

David King, president and chief operating officer of Proxim, said: "With leading positions in the 802.11a, 802.11b and fixed-wireless markets, we are poised to marry the best of each product line into innovative end-to-end solutions that provide unparalleled integrated wireless connectivity and serve pressing customer needs."