Alvarion Sell Its Carrier Licensed Division to Telrad
22 February, 2013
The deal may reach $12.1 million, based on performance-based milestones. Alvarion CEO: "It will allow us to complete our turnaround plan"
Telrad will bring Alvarion’s BreezeCOMPACT basestations into LTE-Advanced
In a new phase of its restructuring program, Alvarion has entered into a definitive agreement with Telrad Networks, in which Telrad Networks will acquire Alvarion’s carrier licensed division. Telrad will pay $6.1 million. In addition, Alvarion may receive certain performance-based milestone payments of up to $6 million.
“Following today’s announcement we will now focus our business on carrier-grade solutions in the unlicensed frequencies. This new focus will allow us to complete our turnaround plan,” said Hezi Lapid, President and CEO, Alvarion.
“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,”said Ran Bukshpan, CEO of Telrad. ” 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.”
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 customers. The transaction is expected to reach its completion during the second quarter of 2013.
Telrad Networks are controlled by Fortissimo Capital (90%) and provides telecom equipment, solutions and services. Headquartered in Israel, it employs over 300 professionals and operates in over 30 countries, with regional headquarters in the Americas, Europe, Asia and Africa.