US Report: Bay to buy wireless developer

Netwave develops products that allow portable computer users to use wireless hookups to a corporate local area network. The company's AirSurfer products currently transmit data at speeds of up to 2MB per second. The AirSurfer products will be added to Bay's BayStack Workgroup product line and will be available directly from Bay and from its channel partners. Bay said it will support higher bandwidth standards as they evolve.

Bay expects to take a one-time charge in the fourth fiscal quarter for the deal. After the deal is complete, Netwave president Jerry Ulrich will report to James Vogt, vice president and general manager of Bay's Distributed Network Systems group.

Bay's stock was up $0.88 at $27.38 in Tuesday morning trading. The company has itself been the target of acquisition rumours lately.

Last week, Bay announced a reorganisation that would combine its Internet and Telecom Business group with the Enterprise Business group. Many analysts believed the change was made in anticipation of a merger.