Former WiMAX vendor Alvarion last week placed itself into receivership and laid off most of its workforce, but its remaining businesses may find a buyer in fellow Israeli firm Sigma Wave.
Alvarion had already offloaded its WiMAX business to Telrad, but retains its carrier Wi-Fi (formerly Wavion) technology as well as DAS and some legacy BWA offerings. It would also come with $24m in debt to any purchaser.
According to Israeli newspaper Globes, Sigma Wave is the largest shareholder in SuperCom, a developer of electronic ID and RFID devices with a market cap of $28m. Sigma could acquire Alvarion directly out of receivership, or via SuperCom, which expects to conduct a secondary issue of stock to raise $20m after August, and has said it would use part of the proceeds for acquisitions.
Alvarion has also received notification that its shares are to be delisted on the US Nasdaq exchange, although that remains subject to a review hearing.
The firm’s receiver, Yoav Kfir, has submitted a 30-day operating plan to Tel Aviv District Court. Alvarion’s debt is mainly to suppliers, as well as Silicon Valley Bank, which initiated receivership proceedings, and Telrad, which acquired the WiMAX business in May for up to $12m. Telrad alleges Alvarion held back money it received from third parties that was connected to assets sold to the US firm, and now owes it $5m.
Alvarion once employed 1,100 people but now only has 98 employees after the receivership. The operating plan calls for the employment of 55 people until August 23.