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NSN sells microwave transport for €15m
04 November 2011
DragonWave takes over microwave transport business from Nokia Siemens Networks in cash and shares deal
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DragonWave
NSN
Nokia Siemens Networks
Canada
Canadian vendor DragonWave plans to buy NSN’s microwave transport business for €10 million in cash and €5 million in shares. The deal will see 360 NSN staff, mainly in Milan and Shanghai, move to DragonWave.
An NSN spokeswoman said the deal was “a step towards improving the competitiveness of the company as a standalone entity, by bringing more focus to the company’s innovation and investment”. NSN hopes to complete the deal, following negotiations with employees and regulators, by the end of March 2012.
After the deal, DragonWave will become the preferred strategic supplier to NSN of packet microwave and related products, and the companies will jointly coordinate technology development activities.
Marc Rouanne, head of network systems at NSN, said: “Our intention is to capitalise on DragonWave’s proven capabilities for innovative product development and focus on our end-to-end solutions.”
Following the deal, NSN will retain responsibility for its existing solution sales and associated services for microwave transport, while DragonWave would be responsible for the product line, including R&D, product management and operations functions.
Peter Allen, DragonWave’s president and CEO, said: “Our increased scale, diversity and customer footprint, coupled with significantly enhanced resources and capabilities, will provide a solid foundation for faster innovation and broader market penetration.”
Under the deal DragonWave will also assume employee liabilities of about €10 million and will enter into a capital asset lease arrangement for about €5 million. Earn-out payments could raise the value of the transaction by about €80 million. GTB
Further reading:
Nokia and Siemens pump €1bn into NSN 29 Sep 2011
NSN 'unsuccessful' in deal for equity stake 27 Jun 2011
NSN buys Motorola operation for $975m 03 May 2011
GTB interview: Rajeev Suri, CEO of Nokia Siemens Networks 18 Feb 2011