Xircom Plans New Firm to Split Product Lines

Xircom Inc., a Thousand Oaks maker of computer networking products, said it is negotiating to create a separate company through a management buyout of its Netwave Wireless local area network division.

Financial terms of the proposed buyout were not disclosed. But according to a tentative agreement, Xircom would retain about 20% of the new company, which would be called Netwave Inc.

Jerry Ulrich, Xircom’s chief operating officer and chief financial officer, would head Netwave. Dirk Gates, Xircom’s chairman, president and chief executive, would be a member of Netwave’s board of directors.

The company would take over the entire Netwave product line. Xircom would continue selling Netwave products for an unspecified length of time after the transaction is completed, which is expected in Xircom’s fiscal fourth quarter ending Sept. 30.

Xircom said the transaction would free both companies to devote their resources to their different product lines.