Pitt Meadow's Tranzeo Wireless Technologies Inc. (TSX: TZT) announced Wednesday that it will acquire a Silicon Valley-based competitor in a US$5 million share deal.
Aperto Networks Inc. will be operated as a wholly-owned subsidiary of Pitt Meadows-based Tranzeo.
Aperto sells wireless voice and broadband data services, which are built on a spectrum of WIMAX frequencies, to businesses, residential customers and government organizations.
Tranzeo's product portfolio includes point-to-point and point-to-multipoint radios, WIMAX equipment and mesh network systems designed for wireless internet service providers, governments, campuses, military, carriers and businesses.
In the acquisition, Tranzeo adds a number of devices and systems to its WIMAX line.
Tranzeo said in a release that the merger will greatly increase the company's market share as it becomes a complete end-to-end broadband systems provider featuring WiFi, WiMax and LTE products.
Aperto's US$8.3 million backlog of purchase orders will be added to Tranzeo's backlog of US$32.7 million.
The merger is expected to close in mid-April.
Tranzeo may issue additional common shares to the Aperto stockholders based on revenues from certain Aperto products that are sold during a one-year earn-out period.
Tranzeo's share price range during the past week: $1.57 and $1.69; 52-week high: $1.87; 52-week low: $0.29.