Nokia Siemens sells microwave transport business
04 November 2011 | Kavit Majithia
Canadian telecoms equipment vendor DragonWave has signed a deal to acquire Nokia Siemens Networks (NSN) microwave transport business in a $13.7 million cash offering.
Under the terms of the agreement, DragonWave becomes NSN’s preferred strategic partner for packet microwave products and gives the company the platform to jointly develop new technology, in addition to strengthening its Microwave services portfolio.
“Through this strategic relationship, customers would continue to receive high-quality services and sales support from Nokia Siemens Networks, while DragonWave’s best breed of products would ensure they have access to industry leading technology,” said Marc Rouanne, head of network systems at NSN. “Our intention is to capitalise on DragonWave’s proven capabilities for innovative product development and focus on our end-to-end solutions.”
Despite the sale of its Microwave services, NSN will still retain responsibility for existing solutions for microwave transport, while DragonWave will focus on the product line, including R&D development.
“The relationship is transformational, giving us the ability to serve customers who want to access an integrated solution,” said Peter Allen, president and CEO at DragonWave. “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.”
DragonWave said the acquisition is largely tailored towards strengthening its product presence in major mobile operators, and it allows the company to tap in to NSN’s global presence. DragonWave takes control of 360 NSN employees, based mainly in Italy and China.
The deal, still subject to regulatory approval, will be completed in Q1 2012.