Cisco (Nasdaq:CSCO) deal, the networking giant announced an agreement to purchase Navini Networks. The move dispelled rumors that Israeli firm Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) would be Cisco's target.
Under the terms of the agreement, Cisco will pay approximately $330 million in cash and assumed options. The Navini acquisition is subject to various standard closing conditions and is expected to close in the second quarter of Cisco's 2008 fiscal year. Upon the close of the acquisition, Cisco plans to integrate Navini into its Wireless Networking Business Unit.
Navini offers a portfolio of broadband wireless WiMAX solutions with comprehensive offerings including base stations, adaptive antenna arrays, management systems, and subscriber modems, which have been sold to more than 75 customers.
Reports circulated in the press several weeks ago regarding a Cisco acquisition in the WiMAX sector, and Alvarion's name was mentioned as a candidate. However, more recently, Navini was viewed as a more likely target.
Cisco expects that its broadband wireless solution portfolio, that now includes WiMAX products, will play a key role in Cisco's Country Transformation and "digital inclusion" initiatives to drive broadband penetration to consumers and business in emerging countries.
"Emerging country service providers are in expansion mode, building out broadband wireless networks and are concerned about deployment costs and the availability of skilled resources," said Brett Galloway, vice president and general manager of the Wireless Networking Business Unit, Cisco. "Around the world broadband wireless networks based upon WiMAX have the potential to add millions of new Internet users who cannot be reached economically using copper or fiber infrastructures. Additionally, WiMAX networks will help drive the transition to open IP-based broadband wireless architectures and accelerate the rollout of new applications and services."
WiMAX technology can be accessed across greater distances than Wi-Fi, and thereby cover entire cities.