Alvarion sells carrier licensed division to Telrad
Feb 22, 2013 (Globes - McClatchy-Tribune Information Services via COMTEX) --
Optimized wireless broadband solutions developer Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) has signed an agreement to sell its carrier licensed division to Telrad Networks Ltd.. Telrad will pay Alvarion $6.1 million and up to a further $6 million in performance-based milestone payments.
Telrad CEO Ran Bukshpan said, "We believe that Alvarion's broadband wireless access portfolio will become a significant building block in Telrad's future. We are committed to the ongoing innovation of the BreezeCOMPACT family and have plans to continue investing in this platform, including TD-LTE Advanced capabilities. Telrad is dedicated to continue serving Alvarion's impressive customer base, and we welcome the Alvarion employees who will join the Telrad family as part of this acquisition. Together we can successfully execute the growth plans we have for Telrad."
Alvarion president and CEO Hezi Lapid said, "We believe that this transaction is in the best interest of our shareholders, our carrier licensed business, our customers and our employees. Telrad's intention with respect to future investments, particularly the development of TD-LTE Advanced capabilities for the BreezeCOMPACT, will enable them to offer our customers cutting edge technologies and provide the optimum solutions and service.
He added, "We will now focus our business on carrier-grade solutions in the unlicensed frequencies. This new focus will allow us to concentrate our resources and attention on our target markets and on successfully completing our turnaround plan."
Alvarion and Telrad Networks have also agreed to sign a reseller agreement according to which Alvarion will continue to provide carrier licensed solutions to its partners and distributors and Telrad will provide Alvarion's unlicensed solutions to its carrier customers after the transaction is completed.
The deal between Alvarion and Telrad is due to be completed in the second quarter of 2013.
Alvarion's share price rose 9.62 percent on Nasdaq yesterday to $0.57, giving a market cap of $35.64 million.
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