Wi-LAN reported on Monday morning it acquired more than 150 patents from broadband solutions provider Alvarion Ltd. (NASDAQ:ALVR) for $19 million.Wi-LAN (TSE:WIN) reported on Monday morning it acquired more than 150 patents from broadband solutions provider Alvarion Ltd. (NASDAQ:ALVR) for $19 million.
Wi-LAN, a company that develops, acquires, and licenses a range of intellectual property in the communications and consumer electronics markets, said it believes the portfolio has broad applicability to 4G infrastructure and handsets.
Alvarion received $8.5 million at closing, while the remaining balance will be due after some conditions are met, mainly approval from Israel’s office of the chief scientist.
As part of the deal, Alvarion was also granted a royalty-bearing license for the patents sold to Wi-LAN, which at the end of last year held a portfolio of around 3,000 patents.
“This is an important acquisition that we expect to significantly strengthen our 4G patent portfolio,” chief executive of Wi-LAN, Jim Skippen, said in a statement.
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“Alvarion is one of the world’s top suppliers of WiMAX, 4G and LTE systems. It has patented a number of key inventions we believe have relevance to both WiMAX and LTE.”
WiMAX is a wireless communications standard designed to provide 30 to 40 megabytes-per- second data rates.
LTE was designed to deliver high-speed broadband data, voice and multimedia services.
Alvarion is a provider of optimized wireless broadband solutions that address connectivity and capacity challenges of both public and private networks.
“This is an important milestone in Alvarion’s turnaround plan,” Alvarion’s CEO Hezi Lapid said in a release.
“By capitalizing on a portion of our IP portfolio, we are bringing cash into the company without undermining our future growth.”
In a separate statement, Alvarion said it expects revenue for the third quarter to be about $27 million, down from its prior view of $31 to $39 million.
The revised guidance stemmed from significant shipments being postponed, and a major order delay from a Wi-Fi customer in Africa.
Alvarion also expects to book a one-time charge of $2.5 million due to the shutting down of its U.S.-based Main Street Broadband.
For the third quarter, the company expects an adjusted per-share loss of 13 cents, compared to a prior estimate of a six cent per share loss.
Analysts polled by Bloomberg had expected Alvarion to post a per-share loss of six cents, on $34.1 million in revenue.