Alvarion Ltd. to buy interWAVE Communications International for 1.87 Times Revenue

Weekly Corporate Growth Report, Aug 9, 2004

The Deal: Alvarion Ltd. has entered into a definitive agreement to acquire interWave Communications International Ltd. for $5.75 per share in cash. The deal requires approval from interWAVE shareholders. The deal has been approved by the boards of both companies and the board of interWAVE has unanimously agreed to recommend that the company's shareholders vote in favor of the transaction. The deal is expected to close by the end of the third quarter of 2004.

Discussion: interWAVE International designs compact wireless systems for voice and data communications. Company products include wireless base station transceivers and controllers designed for discrete spaces like corporate and academic campuses. Telecom service providers use interWAVE hardware to expand system capacity.

Alvarion, formerly known as BreezeCOM, makes broadband wireless network access equipment for high-speed, broadband Internet and intranet connections. Alvarion was formed in 2001, when BreezeCOM acquired Israeli wireless access system maker Floware Wireless Systems.

The acquisition of interWAVE will allow Alvarion to broaden its customer base and expand into a rapidly growing segment of the mobile equipment market. interWAVE's technology and expertise will accelerate the development of Alvarion's next generation of product offerings. The deal is expected to add to Alvarion's earnings beginning in the second quarter of 2005.