WiMAX co WiNetworks acquired by RuggedCom for $14m

This was a disappointing exit considering that $28 million was invested in the company.

WiMAX company WiNetworks Inc. has been acquired by the Canadian communications equipment maker RuggedCom Inc. (TSX: RCM). RuggedCom will pay $9 million in cash and assume $5 million in WiNetworks debts. This was a disappointing exit considering that $28 million was invested in the company by, among others, Rho Management, Columbia Capital, Cedar Fund and Evergreen Partners.

WiNetworks was founded in 2004 by Effi Atad who served as CEO. The company develops WiMAX solutions for both mobile and land-line phones. WiNetworks is composed of a team of wireless industry veterans who were early adopters of WiMAX technology. WiNetworks was the first company in the world to develop a small form factor base station based on the IEEE 802.16e standard and have it certified by the WIMAX forum certification wave 2, including MIMO functionality. Late last year WiNetworks became the first company to have a mobile WiMAX product certified by the FCC in the 3.65 GHz frequency band in the US.

WiNetworks has 57 employees with more than half of the staff in engineering roles.

WiNetworks was considered one of the brightest prospects in Israel's high-tech start-up arena. However, the slow pace of adopting WiMAX technologies and the global downturn affected the company's fortunes.

Published by Globes [online], Israel business news - www.globes-online.com - on September 17, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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