Digital Microwave to Buy Innova

Digital Microwave Corp. said it agreed to buy Innova Corp. for as much as $113 million in stock, expanding its selection of wireless telecommunications products. San Jose-based Digital Microwave had fiscal 1998 revenue of $310.5 million. It and Seattle-based Innova make radios that carry voice and data over telecommunications networks. Digital Microwave will exchange 1.05 shares of its stock for each Innova share, as well as stock options and warrants, for a total of as many as 18.5 million shares. The bid, which equals $6.14 a share, represents a 6.78% premium to Innova’s closing price of $5.75, down 13 cents on Nasdaq. Innova lost $1.06 million, or 9 cents a share, in 1997 on revenue of $36.1 million. Digital Microwave earned $19.9 million, or 42 cents a diluted share, in the year ended March 31. The companies expect to complete the transaction within 90 days. Digital Microwave shares fell 66 cents to close at $5.84 on Nasdaq.