Friday, December 26, 2008
NextWave Wireless Sells Subsidiary To Management Team
San Diego-based Nextwave Wireless said Friday that it has sold 75 percent of its IPWireless, Inc. subsidiary to a new entity formed by the the IPWireless senior management team. NextWave Wireless said it sold the stake to IPW Holdings, for $1M plus reimbursement of transaction expenses of up to $500,000. The sale is part of the firm's earlier announcement that it will be discontinuing the network infrastructure business and intent to divest the IPWireless subsidiary. In addition to the sale, NextWave said that IPWireless and IPW Holding have received debt financing from an unnamed, strategic customer. Dr. William Jones will resign from the NextWave board of directors and as CEO of NextWave Network Products, and will join IPWireless; NextWave said the entire management team of IPWireless will move from NextWave to IPWireless.