Tag: Gilat

Posted on

Airspan Announce Preferred Stock Sale

No need to speculate anymore.

In another twist in our plot, Airspan announces yet another preferred stock sale to Oak Investment Partners.
Neither Axxcelera nor Gilat managed to reach an agreement.

The press release explained the process:

Before entering into the Purchase Agreement with Oak, the Company conducted an extensive and lengthy strategic review process overseen by a special committee of independent directors, which retained Stephens Inc. as its financial advisor in February 2009 to assist with the process. While extensive negotiations were undertaken with several parties, no agreements could be reached on terms acceptable to the Special Committee. Following the termination of discussions with one such party on August 10, 2009, Oak made the offer which, following approximately three weeks of negotiations between the parties, resulted in the execution and delivery of the Purchase Agreement on September 1, 2009.

And Airspan’s dire financial situation:

Without the new investment, the Company would deplete its cash resources in the fourth quarter of 2009.

Either Oak Investment partners believe in Airspan’s turnaround or think future negotiations will help them return their investment. It is also obvious that Airspan cannot maintain their current burn rate and in need of extreme measures to save the failing company.

Posted on

Axxcelera bidding for Airspan

Bizportal , a Israeli financial portal published that Axxcelera is also bidding for Airspan.

Axxcelera, a private company is operating in the same field as Airspan in both Licensed and Unlicensed bands.

According the Bizportal report:

  1. Current bid is for less than $10 Millions
  2. If Axxcelera wins the bid, the Israeli R&D site will be shut down, while the London R&D office will be integrated into Axxcelera.
  3. Around 80 employees are currently working at Airspan’s Israeli branch.

Who Will it Be? Gilat or Axxcelera?

Posted on

Israeli WiMAX Map

Trying to collect a list of all companies and Start-Ups in Israel developing WiMAX Silicon/Systems as well as in the WiMAX Eco-System.

  1. Intel – WiMAX R&D center is in Israel (result of Envara acquisition).
  2. Runcom – Develops MS and BS Silicon as  well as Systems.
  3. Altair Semiconductor – 4G silicon for LTE, WiMAX and XGP.
  4. DesignArt Networks – WiMAX BS Silicon as well as backhaul solution.
  5. Alvarion – WiMAX Systems.
  6. Airspan – WiMAX Systems – Biggest R&D center is located in Israel.
  7. Comsys Mobile – WiMAX, LTE MS Silicon.
  8. WiNetworks – WiMAX Systems.
  9. Gilat – Resell WiMAX Systems (By Airspan).
  10. Ceragon – Mobile backhaul.
  11. Redbend – WiMAX device Management.
Posted on

Israeli Gilat may acquire Airspan Networks

gilat_logoairspan_logoIsraeli online business news Calcalist reports (Hebrew) that Gilat is in negotiations to acquire Airspan Networks.

The acquisition sum is rumored to be around  “few tens of Millions of Dollars” while Airspan is currently traded in the Pink Sheets after voluntarily delisting from Nasdaq and traded for about $4 Millions.

The article mentions a few problems in this rumored acquistion:

  1. Airspan’s commitments to Oak Investment Partners after their investment in 2006, which drives the price higher than the book value.
  2. Airspan HQ are in Boca Raton, Florida with development offices in England and Israel, Sales offices around the world. It is not that easy to absorb such an international company.
  3. In 2008 Airspan had revenues of $70 Millions which resulted in an operational loss of $50 Millions. Alvarion had similar revenues for Q1, 2009 alone.

Gilat is reported to be sitting on a pile of cash, but from a short analysis of the infromation above, I would recommend Gilat to negotiate harder.