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Vyyo faces $45M buyout tender from group that includes former chairman, CEO

Fri, 10/24/2008 - 8:40am
Mike Robuck

An investment group led by former Vyyo chairman and CEO Davidi Gilo has extended its offer to buy the company.

Vision Acquisition Corp., which is a wholly owned subsidiary of Gilo Ventures II, made an offer to buy the 7,967,781 shares of Vyyo’s common stock for 17 cents per share. As of Wednesday, the number of outstanding shares represented 53 percent of the shares that are not held by Vision Acquisition or its affiliates as of Sept. 15, and includes debt and equity.

Norcross, Ga.-based Vyyo announced that its 3 GHz spectrum overlay was in use by Cox Communications last year (story here), but the company has struggled to find additional cable operator customers. In March of last year, Vyyo announced that Singapore-based Starhub was using its 3 Ghz spectrum overlay.

In January, Vyyo shuttered its research and development facilities in Israel, as well as laid off 70 employees in that country.

During its fourth-quarter earnings in February, Vyyo announced that it would cease its wireless operation, which focused on 700 MHz pre-WiMAX technology.

According to published reports, Vyyo anticipates that the company will still be led by Chairman Jim Chiddix and CEO Wayne Davis if the offer by Gilo goes through.

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