Agreement includes license to use patents
TEL AVIV, Israel--(BUSINESS WIRE)-- Alvarion® Ltd. (NASDAQ: ALVR), a global provider of optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of public and private networks, announced the sale of part of its patent portfolio to Wi-LAN Inc. (TSX:WIN) (NASDAQ:WILN) for up to $19 million.
Alvarion received $8.5 million at closing, with the balance due after meeting certain conditions, primarily the receipt of an approval from the Office of the Chief Scientist in Israel.
In addition, Alvarion was granted a royalty-bearing license for the patent portfolio sold to Wi-LAN.
“This is an important milestone in Alvarion’s turnaround plan. By capitalizing on a portion of our IP portfolio, we are bringing cash into the company without undermining our future growth,” said Hezi Lapid, President and CEO of Alvarion. “This will support our cash needs and allow us to make the investments necessary to execute our turnaround plan and put Alvarion on a path to sustainable growth and profitability. At the same time, we are retaining access to this patent portfolio, which will allow us to continue develop our market leading products and serve our customers now and in the future.”
Alvarion Ltd. (NASDAQ:ALVR) provides optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of telecom operators, smart cities, security, and enterprise customers. Our innovative solutions are based on multiple technologies across licensed and unlicensed spectrums. (www.alvarion.com)
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Alvarion’s management and are subject to various factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: our failure to fully implement our 2012 turnaround plan, our inability to reallocate our resources and rationalize our business in a more efficient manner, potential impact on our business of the current global macro-economic uncertainties, the inability of our customers to obtain credit to purchase our products as a result of global credit market conditions, the failure to fund projects under the U.S. broadband stimulus program, continued delays in 4G license allocation in certain countries; the failure of the products for the 4G market to develop as anticipated; our inability to capture market share in the expected growth of the 4G market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; the failure of our strategic initiatives to enable us to more effectively capitalize on market opportunities as anticipated; delays in the receipt of orders from customers and in the delivery by us of such orders; our failure to fully and effectively integrate the business and technology of Wavion Inc., acquired by us in November 2011, into our products and realize the expected synergies from the acquisition; the failure of the markets for our (including Wavion's) products to grow as anticipated; our inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; our inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers; our inability to comply with covenants included in our financing agreements; our inability to raise sufficient funds to continue our operations, either through equity issuances or asset sales; and other risks detailed from time to time in the Company’s annual reports on Form 20-F as well as in other filings with the U.S. Securities and Exchange Commission.
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Source: Alvarion Ltd.