17 September 2009

RuggedCom deals for wireless provider

Rugged communications networking solution provider RuggedCom will pay $14 million to pick up WiNetworks Ltd., a developer of systems based on WiMAX 802.16e mobile broadband wireless technology.

Large private networks and service providers use WiNetworks’ technology to extend mobile broadband connectivity over metropolitan areas. As a result of the deal, the WiMAX products will form the new RuggedMAX product line.

Under the terms of the deal, Woodbridge, Ontario, Canada-based RuggedCom will pay $9 million in cash plus assume WiNetworks’ debt of $5 million.

WiNetworks based its technology on the IEEE 802.16e standard. Late last year, WiNetworks gained certification from the FCC for its mobile WiMAX product in the 3.65 GHz frequency band in the U.S. WiNetworks has 57 employees with more than half of the staff in engineering roles.

“We created a RuggedWIRELESS division earlier this year in order to capitalize on a huge market opportunity for wireless technology in our target markets” said Marzio Pozzuoli, RuggedCom’s president and chief executive. “Last month, we added a 3G cellular router to our product offering to give our customers a wireless WAN option through the cellular service providers. Many of our customers are looking to deliver that same type of service, but maintain a greater level of control over the performance, reliability, and security of the network. WiMAX is the best technology available to extend private IP networks wirelessly in a standards-based way.”

Pozzuoli added this deal plays into RuggedCom’s Smart Grid strategy.

“The WiNetworks product line is ideally suited to mate with our industry leading hardened networking products and drive automation further into the electric grid,” he said.

WiNetworks technology consists of small form factor base station variants with differing power options, and it is available in a choice of licensed and unlicensed bands.

For related information, go to www.isa.org/productivity.