NSN sells microwave transport business

Nokia Siemens Networks is to sell its microwave transport business to US-based vendor DragonWave as part of a strategic technology and supply arrangement.

Initially, DragonWave will pay €30 million for the business, which includes NSN’s OSS and related support functions.

The payment includes €10 million in cash, €5 million worth of DragonWave common shares, the assumption of employee liabilities of €10 million and a capital asset lease arrangement of €5 million.

NSN said it could gain a further €80 million from sales performance based “earn-out” payments following closure of the deal, which the companies hope to achieve in Q1 next year.

An NSN spokesperson 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".

Last month, the Finland-based vendor unveiled a new chairman and a €1 billion cash injection.

DragonWave manufactures high-capacity packet microwave solutions for next-generation IP networks. Its principal application is wireless network backhaul.

As part of the deal DragonWave becomes NSN’s preferred, strategic supplier of packet microwave and related products.

“This relationship is transformational, giving us the ability to serve customers who want to access an integrated solution,” said DragonWave president and CEO Peter Allen.

“In addition, it provides DragonWave an expanded technology base to address those customers who wish to purchase stand-alone best-in-breed products.”

Three hundred and sixty NSN staff will transfer to DragonWave.

More News

Telia lowers Uzbek fine expectations, finally sells Tcell, as it reports Q1 numbers Telia lowers Uzbek fine expectations, finally sells Tcell, as it reports Q1 numbers Telia has said it hopes to pay less than anticipated for alleged corruption in Uzbekistan, as it finally sold off its opco in Tajikistan. More detail
KPN sees wholesale problems add to its business woes in Q1 KPN sees wholesale problems add to its business woes in Q1 KPN’s wholesale arm registered a double-digit decline in sales in the first three months of the year, although the operator made headway on improving its profits. More detail
Swedish operators investigated over preventing new market entrants Swedish operators investigated over preventing new market entrants Mobile network operators in Sweden are being investigated for potentially having breached EU antitrust rules. More detail
BICS set to acquire TeleSign for $230 million BICS set to acquire TeleSign for $230 million Proximus subsidiary BICS is set to acquire TeleSign as it seeks to expand its presence in cloud communications. More detail
Ericsson hits new low on operating loss, "unacceptable" performance at IT, cloud arm Ericsson hits new low on operating loss, Ericsson CEO Börje Ekholm described the vendor’s latest financial performance as “unsatisfactory” as it saw sales and profits tumble. More detail
    

@eurocomms