Comverse plunges after disappointing results
Alvarion will reportedly sell the WiMAX division for a few tens of millions of dollars.
Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) has put its WiMAX division, once one of the company's core businesses and main growth engine, up for sale. Fortissimo Capital, the private equity fund run by Yuval Cohen, which reportedly once tried to acquire Alvarion in toto is in talks to buy the WiMAX division. Sources inform ''Globes'' that an Indian company and US investment fund also expressed interest in acquiring the division but at present there are only talks with Fortissimo.
Several months ago, Alvarion announced that it was reviewing a range of options about its WiMAX business, including the sale of the division.
Alvarion and Fortissimo declined to comment on the report.
Alvarion will reportedly sell the WiMAX division for a few tens of millions of dollars, and that part of the proceeds will be subject to predetermined milestones. The division has tens of millions of dollars in annual sales, but it has not been profitable for several quarters. If Fortissimo acquires the division, it will probably merge it with subsidiary Telrad Networks Ltd., a developer of communications infrastructure equipment, and which has not been a particularly successful investment for Fortissimo so far.
LTE trumped WiMAX
Alvarion has been in crisis for years, resulting in waves of layoffs and the collapse of its market cap to just $28 million. The company was created through the merger of Breezecom and Floware in 2001 to provide wireless broadband communications equipment, based on WiMAX technology, which was considered the next generation for mobile networks. But WiMAX lost out to LTE for 4G networks, and WiMAX was relegated to a connectivity technology to broadband networks in remote regions. In recent years, Alvarion has turned its attention to other technologies, acquiring Wavion Networks from Elron Electronic Industries Ltd. (TASE: ELRN) in 2011 for this purpose.
Assuming that Alvarion sells its WiMAX division, it will be left with two core businesses: vertical enterprise communications solutions; and mobile capacity and coverage solutions and network traffic congestion solutions. A sale would help Alvarion's dwindling cash reserves, which totaled $15 million at the end of September 2012. The company sold patents and its debt rights in Nortel Networks last October to improve its liquidity.
In a separate development, Alvarion announced that will sell Wi-Fi base stations to Hitachi Cable Networks Ltd. to cover major train stations and congested areas in downtown Tokyo business districts.
Published by Globes [online], Israel business news - www.globes-online.com - on January 15, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013
You comment was recieved and soon will be published.
Thank you for posting your comment, which will be reviewed for publication.
Load more comments
Fourth fiscal quarter revenue fell 9.3% to $166.5 million from $183.6 million for the corresponding quarter of 2012.
Data analytics co Fundbox raises $17.5m
Fundbox processes invoices, allowing small businesses to fix their cash flow.
Myze locates best credit card offers
Myze trolls credit card companies' sites to match offers to cardholders.
Wix jumps on reaching 46m users
The company's market cap is $853 million, 38% above its IPO, but 27% below its record.
Digital marketing co Kenshoo raises $20m
The company will use the funds to develop its predictive media optimization.
Kaltura's president Michal Tsur: We plan IPO
The video creation company is reportedly worth up to $1 billion.
Digital picture organizer Flayvr raises $2m
The company will use the proceeds to expand US operations and extend its platform.
AudioCodes to build Beersheva R&D center
The company will invest NIS 100 million in the new cloud technologies center.
Cloud security co GreenSQL raises $7m
The company will use the proceeds to support international business expansion.
Amazon, Google, Microsoft battle to host developers
The Internet giants want to attract developers to build apps on their cloud-computing infrastructures.
Internet of Things co Neura raises $2m
Neura will use the funds to develop technology to understand behavioral patterns.
Video optimization co Beamr raises $9.5m
Marker and Google chairman Eric Schmidt's Innovation Endeavors led the investment.
Stratasys acquires Interfacial Solutions assets
Interfacial Solutions provides thermoplastics R&D and production services.
Amdocs CEO: We strive for 5% annual growth
Eli Gelman fears complacency as the company expands in emerging markets.
Intel Israel development center to remain vital
Intel Israel president Mooly Eden tells "Globes" that Israel remains central to the chip company's plans.
SuperCom share price skyrockets 920%
SuperCom CEO Arie Trabelsi tells "Globes" how he has turned around the identity solutions company.
IMI enters cyber security arena
As privatization approaches, Israel Military Industries bets on a market with enormous growth potential.
Wanted: Arts majors for high-tech
Technology companies are looking for creativity, flexibility, and the ability to think outside the box.
2013 boom year for Israeli high-tech
In the first half of the year, there was a 52% rise in demand for mobile and web developers, and salaries are up as well.
CyberArk reboots network security
CEO Udi Mokady: Media reports on electronic surveillance make explaining our product unnecessary.
Architect Eli Attia: Google stole my life's work
Eli Attia has developed an innovative building design and construction concept that Google sees generating $120 billion annually.