With NSN Deal Done, DragonWave Shakes Things Up

Canada’s DragonWave Inc. is taking a number of steps to realign its business as it integrates Nokia Siemens Networks’ microwave transport business, including cutting nearly 70 jobs in Ottawa and in Israel.

The NSN deal closed June 1 (for more information, click here).

The supplier of packet microwave radio systems for mobile and access networks says it expects to save approximately $6 million in annual operating expenses as a result of this staff reduction.

In addition, to support the anticipated increase in end users and volumes of shipments resulting from the combination of the DragonWave and NSN’s microwave businesses, DragonWave has established a distribution capability in Venray, Netherlands, to complement its existing logistics capabilities in Ottawa and in Penang, Malaysia.

DragonWave also is staffing new regional subsidiaries in Mexico and Brazil, and it will increase staff levels in certain other regional offices. “This global presence will augment the previously announced services arrangement between DragonWave and Nokia Siemens Networks in Italy, and an interim services agreement between the same parties that has been entered into pending the completion of the acquisition of Nokia Siemens Networks’ microwave transport operations in China,” the company adds.

The acquisition of certain Chinese operations associated with the business is expected to be completed in the second half of this year, subject to compliance with local Chinese regulatory requirements. Approximately 130 NSN employees now based in Shanghai (China) are expected to transfer to DragonWave once the Chinese deal has closed.

“In closing this acquisition, we’ve established a new level of collaboration with Nokia Siemens Networks that positions DragonWave strategically for continued growth,” comments DragonWave President/CEO Peter Allen.  “The new Harmony line we’re adding to our portfolio is backed by unmatched service and support and further bolsters our ability to participate in the tremendous growth in LTE networks worldwide.”