California Microwave buys Adaptive Broadband for $11 million
Spin off of Olivetti & Oracle labs sold
California Microwave has bought former Olivetti unit Adaptive Broadband for $11 million in cash. A further $7 million will be paid provided Adaptive reaches its targets. Adaptive was part of the Olivetti and Oracle Research lab before it was spun off as a separate outfit. The unit specialised in delivering wireless Internet access technology, providing up to 25Mbps in the 5.8GHz unlicensed frequency band. The first products using Adaptive technology are expected in the middle of next year. California Microwave said it would invest further R&D funds in the technology, which is suited for emerging countries where a wired infrastructure does not exist. Market research company Pioneer Consulting estimates that the market for this type of technology will amount to $2.4 billion by the year 2001, and $6.5 billion by 2007. Most of the revenues from the sale will be split equally between Olivetti and Oracle. Staff at Adaptive will continue to work in Cambridge, England. According to Professor Andy Hopper, a director of Adaptive and of the laboratory: "In effect, California Microwave has purchased the technology in the same way that a venture capitalist would." The laboratory had previously spun off two other units, Telemedia Systems and Virata. ® Click here for more stories
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