DragonWave Buys Part Of Nokia Siemens Networks, Gains 360 Employees

DragonWave this morning announced plans to acquire Nokia Siemens Networks’ microwave transport business, including its associated operational support systems and related support functions.

The move turns DragonWave into a strategic supplier of packet microwave and related products to Nokia Siemens Networks, and the companies state they will “jointly coordinate technology development activities”.

DragonWave and NSN hope the deal will allow for the birth of the next generation of backhaul products, supporting microwave solutions for mobile operators all across the globe.

The consideration paid by DragonWave on closing will include approximately 10 million euros in cash and 5 million euros worth of DragonWave common shares, although earn-out payments could raise the value of the transaction by approximately 80 million euros down the line.

DragonWave expects to finance the transaction through a combination of cash on its balance sheet and increased debt facilities.

As part of the acquisition, the companies expect approximately 360 Nokia Siemens Networks employees, mainly based in Milan (Italy) and Shanghai (China) to transfer to DragonWave.

The acquisition is expected to close in Q1 2012.

Nokia and Siemens have been trying to sell their joint venture, which was originally formed in 2007, for some time now, but it looks like it’s having a tough time convincing anyone to swallow it whole. Perhaps the new strategy is to sell it in chunks.