Tranzeo to Merge With Aperto Networks to Expand Broadband Solutions

Tranzeo Wireless Technologies Inc., a British Columbia-based manufacturer of wireless broadband and WiMAX communication systems, has reportedly entered into a definitive merger agreement with Aperto Networks (News - Alert) Inc. and key Aperto shareholders.

The terms of the agreement dictate that upon the satisfaction of closing conditions, Aperto will be merged into a newly incorporated subsidiary of Tranzeo (News - Alert). Aperto will survive and will continue to be operated as a wholly-owned subsidiary of Tranzeo.

“Acquiring Aperto immediately transforms Tranzeo into a market leading complete solutions provider for major telecommunications operators while still supplying product to Tranzeo’ s existing wireless Internet service providers,” said Jim Tocher, president and CEO of Tranzeo, in a statement. “With an established world-wide customer base and a pipeline of new customers now in trials, the benefits of today’ s announcement will start to bear fruit within a year. The future for Tranzeo has never looked better.”

The merger is expected to greatly increase Tranzeo’ s market share as it moves to a complete end-to-end broadband solutions provider offers WiFi, WiMAX (News - Alert) and LTE products. Aperto currently has a backlog of purchase orders for $8.3 million, which will be added to Tranzeo’ s backlog of $32.7 million.

“The combining of Tranzeo and Aperto is a big win for wireless service providers,” said Randall Meals, Chairman of Aperto’ s Board and Managing Director of Quicksilver Ventures. “We continue to be bullish on the broadband wireless market and now Tranzeo’ s position in the market.”

Existing Tranzeo and Aperto customers are expected to greatly benefit from the combined technologies and complete solutions Tranzeo will now be able to provide. Both companies should also enjoy greater market reach with a new portfolio of offerings that enhance the value delivered to clients.

“Tranzeo’s responsiveness, world-class manufacturing and additional product breadth combined with Aperto’ s proven worldwide sales, support team, and channels will significantly benefit our customers on a global basis,” said Bill Waters, Senior Vice President of Worldwide Sales and Support at Aperto Networks. “I am looking forward to serving our existing customers, expanding our market and providing new solutions to our channel partners.”

Tranzeo expects the acquisition to be complete through issuances of common shares to the stockholders of Aperto and upon satisfaction of the required closing conditions, Tranzeo will issue common shares to the stockholders of Aperto based on a $5 million base consideration amount. Both companies anticipate the merger will be completed by mid-April of 2010.

“This is very good news for TRG and the future of broadband services in Indonesia,” said Gatot Tetuko, President of PT. Teknologi Riset Global (TRG), an affiliate company of leading telecommunication infrastructure provider the Indonesian Tower Group.

“With our joint development agreement with Tranzeo, this will give us access to additional advanced wireless technologies which we will incorporate into our broadband solutions.”

In other Tranzeo news, the company announced earlier this month that it has received Industry Canada approval for its WiMAX Broadband Wireless equipment to operate in the recently released 3.65-3.7GHz licensed frequency bands.