DragonWave (NASDAQ:DRWI, news, filings), a Canadian-based supplier of wireless backhaul products, has announced plans to acquire a piece of Nokia Siemens Networks. They will be acquiring NSN’s microwave transport business, including its OSS and other related systems for the sum of €10M in cash plus €5M in stock plus additional sales-based earn-out payments. Additionally, DragonWve will become NSN’s preferred strategic supplier of packet microwave and related products, with the two jointly coordinating development activities.
Some 360 NSN employees, mostly from Milan and Shanghai, will become part of DragonWave as part of the deal. That will more than double the company’s headcount, meaning this is no minor deal for DragonWave. It reshapes the company rather substantially. DragonWave’s future has been a bit fuzzy ever since Clearwire cut back its WiMAX buildout. This move will help them regain the scale they previously enjoyed and help them diversify their revenue stream to other wireless providers, as Nokia Siemens had a nice group.
But for Nokia to make this move suggests their division wasn’t making the grade, so DragonWave has some work to do on the integration I think.
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Categories: Mergers and Acquisitions · Telecom Equipment · Wireless
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