SOUTH DEERFIELD, Mass., March 19 -- Telaxis Communications Corp., a developer of wireless fiber optic and Ethernet connectivity products, and Falls Church, Va.,-based Young Design Inc. (YDI), a private manufacturer of broadband solutions for wireless Internet service providers, common carriers and mobile carriers, announced they have signed a strategic agreement to combine the companies.
Telaxis will issue stock to the current YDI stockholders and YDI will become a wholly-owned subsidiary of Telaxis. Telaxis will be the continuing corporation, and its current stockholders will continue holding Telaxis stock following this transaction. Telaxis expects to change its corporate name to "YDI Wireless Inc." at the next meeting of its stockholders. Until then, Telaxis said it will use "YDI Wireless Inc." as a trade name.
The combined company will be headquartered in Falls Church and will initially have approximately 95 employees. Sales offices will be located in YDI's current Falls Church and Sunnyvale, Calif., locations. Another sales office may be opened in Telaxis' leased facility near Dallas, Texas, which was previously vacated as part of a restructuring plan. Telaxis' South Deerfield, Mass. operation will be the product and technology development center for the combined company.
Telaxis said its common stock will likely be traded on the Over-the-Counter Bulletin Board after Telaxis and YDI are combined, which is expected by April 1.
For more information, visit: www.tlxs.com