P-Com, Telaxis set to merge

By Susan Rush
From The September 11, 2002 Edition Of CED Broadband Direct

What do a wireless telecom product provider and a wireless fiber optic connectivity product developer have in common? Plenty, say the CEOs of P-Com Inc. and Telaxis Communications Corp. So much so in fact that the two companies have agreed to merge their operations.

Working as one, the combined company will be able to offer a wider range of telecom products to meet the bandwidth needs of carriers and network owners, P-Com's products include point-to-multipoint, point-to-point and spread spectrum wireless access systems. Telaxis brings its FiberLeap products, which are designed to provide wireless extensions of fiber networks, to the table. The new company will focus its efforts in Asia, Latin America and the Middle East.

"The merger of P-Com and Telaxis creates a powerful combination that unites P-Com's millimeter-wave wireless networks with Telaxis' millimeter-wave technology and its demonstrated capabilities for development of low-cost radio frequency equipment," said Telaxis CEO John Youngblood.

Under the terms of the deal, Telaxis shareholders will receive 1.117 shares of P-Com common stock for each share of Telaxis common stock. Once the deal is closed, P-Com shareholders would own roughly 62.5 percent of the new entity and Telaxis shareholders would own roughly 37.5 percent.

The company will be headquartered in Campbell, Calif. and will employ roughly 250 people. The newly merged company will be run by P-Com executives. George Roberts, P-Com's interim CEO, will become chairman, and Leighton Stephenson, P-Com's chief financial officer, will assume the responsibility of CFO.