Carrier WiFi

Trapeze Mulling Sale?

WiFi player Trapeze Networks Inc. is considering putting itself up for sale, according to industry sources.

The Pleasanton, Calif.-based company -- one of the largest private players remaining in the wireless LAN switch sector -- is said to be mulling a deal with of the larger public companies in the sector.

"I've heard it from multiple sources... including investors in the company," one industry insider tells Unstrung. "I think it is pretty serious, but they're not desperate by any means." (See Trapeze Grows in 1H.)

This source believes Trapeze's major OEM partners, Nortel Networks Ltd. and 3Com Corp. (Nasdaq: COMS), would be the most likely suitors.

Others, however, say Juniper Networks Inc. (NYSE: JNPR), which has invested in Trapeze before, could also be a name in the frame. (See Trapeze Swings $30M .)

Motorola Inc. (NYSE: MOT) is also an investor in Trapeze, but Motorola bought No. 2 enterprise WiFi player Symbol a year ago for $3.9 billion. Another major WiFi buyout seems unlikely. (See Moto's Symbolic Convergence.)

Trapeze itself would not comment on the industry chatter. A company spokesman, however, noted that CEO Jim Vogt has consistently said the company will "keep its options open."

Any Trapeze move could be indicative of another round of changes in the enterprise WiFi market. With Cisco Systems Inc. (Nasdaq: CSCO) continuing to hold and grow its WLAN market share, several WiFi startups are rumored to be considering their exit strategies.

— Dan Jones, Site Editor, Unstrung

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