July 21, 2005, 5:02 PM — Wi-Fi veteran Proxim, whose assets were to be bought by Moseley Associates, has gone to a higher bidder at the bankruptcy court.
Wireless broadband player Terabeam will pay $US28 million for the assets of the one-time Wi-Fi leader, adding $7 million to the $21 million price agreed by Moseley in June.
The price increase reflects growing appreciation of Proxim's assets, after the bankruptcy process clears off the debt attached to the company. In particular, the company's Tsunami point-to-point wireless broadband products were developing into a WiMax range, which figured large in Moseley's plans.
Like Moseley before it, Terabeam has promised, in its Terabeam press release, to continue to sell and support Proxim's products.
Proxim is surprised but happy: "At the time [of the Moseley agreement] we indicated that the final acquisition would be completed after a bidding process," said a Proxim statement. "Although we did not anticipate another company stepping in with a higher offer, we are excited that Terabeam Wireless did emerge from the process as the higher bidder and future parent of Proxim." Terabeam is well-respected and aligned with Proxim