Proxim, Western Multiplex agree to merge

Proxim, Western Multiplex agree to merge

Wireless LAN vendor Proxim has agreed to merge with Western Mulitplex, a builder of longer-distance fixed wireless bridges that was founded in 1979.

The merged company will retain the name Proxim and will have products for building wireless LANs and connecting these wirelessly between buildings or across a campus.

However, last week the stock prices of both companies plunged after news of the deal became public, reflecting investors' initial scepticism that the merger will create the LAN-WAN synergies touted by executives. Proxim sells its Harmony brand of IEEE 802.11b -- and recently, 802.11a -- wireless LAN access points and interface cards.

Western Multiplex created the Tsunami family of wireless Ethernet bridges for 10Base-T, Fast Ethernet and Gigabit networks.

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