Proxim, developer of broadband and wireless Internet solutions, is to acquire Netopia in a stock-for-stock merger.
Proxim is produces the Symphony product range, its wireless networking solution for homes, small offices and classrooms. Following last year's acquisition of Farallon, it also has a presence in the Mac market, including wireless-networking solutions announced at Macworld Expo.
Netopia provides broadband Internet equipment (ADSAL boxes, network hubs...) and e-commerce Web solutions to service providers.
Under the agreement's terms, each share of Netopia common stock will be converted into 0.3 shares of Proxim common stock, resulting in a total purchase price of $223 million, based on the closing price of Proxim stock on January 23, 2001. The purchase will be completed during late first quarter or early second quarter 2001. The acquisition is subject to US Government approval.
David King, CEO of Proxim, believes the merger will give Proxim access to DSL and other major loop technologies. He said: "Proxim will have access to an array of WAN/LAN technology solutions providing consumers with fast networking solutions."
CEO of Netopia, Alan Lefkof said: "We expect to provide wireless, voice and data solutions to residential as well as small and medium-sized business customers."
Lefkof will become Proxim's chief operating officer and co-chairman of the board. David King will remain as Proxim's chief executive officer and also be appointed as co-chairman.
Reese Jones, founding CEO and chairman of the board of Netopia, said: "I am very excited about this proposed merger bringing together these important broadband technologies for home and small business access to the Internet for both data and voice over the Internet."