NSN sells microwave backhaul business
Wireless networking kit vendor DragonWave on Friday announced plans to acquire the microwave transport business of Nokia Siemens Networks. The price is around €15m with extras and performance related payouts potentially raising the value of the transaction to above €80m.
DragonWave will pay approximately €10m in cash and €5m in shares. The company will also assume employee liabilities of €10m and will enter into a capital asset lease arrangement for €5m. Performance based earn-out payments could raise the value of the transaction by approximately €80m.
Under the deal, DragonWave would also become the preferred, strategic supplier of packet microwave and related products to NSN and the companies would jointly coordinate technology development activities. The deal is to accelerate innovation in backhaul products, the companies said.
NSN would 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.
Approximately 360 NSN employees, mainly based in Milan, Italy and Shanghai, China, are to transfer to DragonWave.
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