The deal includes a three-year licensing and supply deal as well as a settlement to the patent litigation suit between the companies.
Under terms of the deal, which is expected to close in 60 days pending regulatory approval, Proxim will acquire Agere's line of 802.11b wireless networking equipment, including the Orinoco product line and other products for small business, home, enterprise and service provider environments, the companies said in a joint press release.
Agere will retain its wireless chip, module and card businesses, the companies said.
The companies will also enter into a three-year agreement in which Agere will supply Proxim with wireless chips, modules and cards, as well as a licence to the Agere technology used in the Orinoco product line, the companies said.
The companies will also cross-licence a number of their patents under the deal and settle a patent infringement suit filed by Agere in May 2001.
In that suit, Agere charged that Proxim was infringing on its patents concerning multirate communications systems and antennas, among other issues.