DragonWave to buy NSN's microwave business
NSN agrees to sell its microwave business for $20.6m in cash and shares
Canadian wireless backhaul specialist, DragonWave, has agreed to acquire Nokia Siemens Networks' microwave transport business and related support functions for $13.7m in cash and $6.9m worth of DragonWave shares.
As part of the deal, about 360 Nokia Siemens Networks' staff, mainly based in Milan, Italy and Shanghai, China, will transfer to DragonWave, which will also become the preferred supplier of packet microwave products to Nokia Siemens Networks.
The two companies believe the deal will help to "accelerate innovation" of microwave backhaul products for mobile operators.
Marc Rouanne, head of network systems, Nokia Siemens Networks, said that the vendor's intention was to capitalise on DragonWave's "innovative product development" and focus on offering its customers end-to-end solutions.
Peter Allen, president and CEO, DragonWave, described the deal as "transformational". "It provides DragonWave an expanded technology base to address those customers who wish to purchase stand-alone best-in-breed products," he said.
The deal is expected to close in the first quarter of 2012.