Ottawa-based EION Inc. has purchased three broadband wireless product lines from Wi-LAN Inc. of Calgary.

Under the agreement, EION buys the assets along with the current orders in-hand of the three product lines. It will also acquire the global installed base with a network of over 120 resellers and assume responsibility for the warranty obligations of the installed base.

Under a separate agreement, EION is purchasing from Wi-LAN an existing inventory of finished goods, components and test equipment relating to the products. In addition to the cash consideration paid to Wi-LAN, EION has agreed to pay quarterly royalties based on a percentage of the manufacturers cost for each product sold in two of the product lines.

The move will allow EION to capitalize on growing market for broadband wireless.

"Adding Wi-LAN's product lines to our wireless division's portfolio and combining the strength of the distribution channels brings an unmatched technological and business edge for EION's customers worldwide. With growing market interest in WiMAX, this transaction further strengthens EION's business innovation in partnerships and channels," says Dr. Kalai Kalaichelvan, chairman and CEO of EION Inc.

Detailed financial terms of the transaction were not disclosed. The transaction is scheduled to close on or before April 18.