International high-speed wireless solutions provider Stratex Networks plans to acquire Cape Town-based Plessey Broadband Networks, a division of Tellumat.
Tellumat SA is a listed telecommunications, RF and microwave product developer. The deal will give Stratex Networks what it describes as "the most complete portfolio of licensed and licence-exempt microwave radio" networks.
The asset purchase agreement provides for payment to Tellumat of $3 million in Stratex Networks' stock and around $3 million in cash, dependent on the audited value of net assets at the time of closing. The transaction is scheduled to close on 1 October, subject to customary closing conditions.
"We have been impressed with customer reaction to the Plessey licence-exempt product line since we began selling it under a private label agreement earlier this year," says Stratex chairman and CEO Charles Kissner.
He says the acquisition will help the company grow its presence in the licence-exempt transmission market worldwide, and will expand its physical presence in the sub-Saharan African market, an area of strong growth for Stratex Networks.
Stratex Networks has headquarters is in San Jose, California, and is traded on the NASDAQ under the symbol STXN.
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