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Alvarion to Acquire Wi-Fi Company Wavion for $30 Million

Wireless Backhaul

Wireless Backhaul Industry News.

November 02, 2011

Alvarion to Acquire Wi-Fi Company Wavion for $30 Million

By Ashok Bindra
TMCnet Contributor

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To meet the connectivity, capacity and coverage challenges of public and private networks, broadband wireless solutions provider Alvarion (News - Alert) Ltd. has inked a definitive agreement to acquire privately-held Wavion, an Israel-based technology leader in carrier-grade Wi-Fi applications, for approximately $30 million in cash. According to the buyer, Wavion’s revenues for the last twelve months were approximately $16 million.


Closing is expected before the end of 2011 and is subject to customary closing conditions. Alvarion said that it will finance the acquisition with a $30 million three year credit facility from Silicon Valley Bank.

Excluding non-recurring acquisition-related charges, Alvarion expects the acquisition to be accretive to non-GAAP earnings beginning in the second quarter of 2012. Plus, Alvarion said that this acquisition marks another milestone in the execution of the company’s strategic plan aimed at shifting its primary focus from WiMAX-based RAN solutions to becoming a multi-technology wireless broadband solutions powerhouse.

The advanced Wi-Fi technology provided by Wavion, including its leading edge beamforming capability, has reached a level of maturity and acceptance that makes it an attractive option for addressing the most demanding mission-critical applications, according to Alvarion. Consequently, Alvarion intends to combine Wavion’s best-of-breed Wi-Fi platform with its 4G RAN solution and recently-acquired distributed antenna systems (DAS) capabilities to create a full suite of capacity and coverage solutions that is not available from any other vendor.

In a statement, Adlane Fellah (News - Alert), president of wireless research and market analysis firm Maravedis, stated, “Carrier Wi-Fi is one of the fastest growing segments in the telecom equipment industry, and represents a significant new market opportunity for Alvarion." He added, "This market is expected to grow at least 40 percent annually to about $500 million over the next several years. Alvarion's leadership and global presence in 4G solutions, augmented by Wavion's enhanced Wi-Fi 2.4 GHz and 5 GHz technology, will allow network operators to address the increasingly complex requirements of wireless broadband networks.”

Similarly, commented Eran Gorev, president and CEO of Alvarion, “Wavion’s field-proven solution is the ideal addition to our portfolio.” “Wavion’s offering will enable us to leverage our global reach, extensive customer base, and network of go-to-market partners. This acquisition will also position the company in exciting new high-growth segments such as Wi-Fi offload,” noted Gorev.

 


Ashok Bindra is a veteran writer and editor with more than 25 years of editorial experience covering RF/wireless technologies, semiconductors and power electronics. To read more of his articles, please visit his columnist page.

Edited by Rich Steeves

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