Nokia Siemens Networks has agreed to sell its microwave transport business to DragonWave. The deal includes the associated OSS/BSS, and DragonWave will also become the preferred, strategic supplier to Nokia Siemens Networks of packet microwave and related products. In addition, the companies will jointly coordinate technology development activities. NSN will remain responsible for its existing deployments, while DragonWave will be responsible for the product line, including R&D, product management and operations functions. NSN said the deal will speed up innovation in backhaul products, building on DragonWave's existing base in the market and the Nokia Siemens footprint among mobile operators. In payment, DragonWave will pay EUR 10 million cash and issue EUR 5 million in shares to NSN, subject to a 24-month lock-up. The company will also take over EUR 10 million in employee liabilities for the 360 NSN staff transferring to DragonWave under the deal. The staff are based mainly in Milan and Shanghai. Nokia Siemens may also receive earn-out payments dependent on future sales performance of the assets, which could take the total acquisition cost to EUR 80 million. The companies expect to close the acquisition in the first quarter of 2012.
