The purchase price is €10.6 million in cash, subject to post-closing adjustments, and 2,000,978 common shares of DragonWave. DragonWave has agreed to become NSN's preferred strategic supplier of packet microwave solutions and other products.
"In closing this acquisition, we've established a new level of collaboration with Nokia Siemens Networks that positions DragonWave strategically for continued growth," stated CEO Peter Allen.
"The new (product) 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."
DragonWave further announced it has opened a credit facility with Comerica Bank and Export Development Canada to fund the rest of the acquisition and DragonWave's working capital requirements.
The credit facility is for US$40 million, of which DragonWave drew US$35 million as of Friday.
The revised agreement, first announced last year and amended in May, changed the acquisition price dynamics, eliminated earnouts (worth €80 million), and removed DragonWave's previous pledge to acquire assets and employees in NSN's Italian operations.
Additionally, the revised agreement included picking up other assets through a "capital asset lease or other deferred sales arrangements" for £3.6 million (£1.4 million less than before)
DragonWave and NSN made the changes in the agreement due to poor economic conditions in Europe and ongoing restructuring in NSN, the firms stated in May.
The timing of the planned takeover was also pushed back a quarter to this Friday.
DragonWave's full-year results, released in May, showed a $33.5 million loss compared with $2 million in earnings in 2011. The company's full-year revenue for fiscal 2012 dropped more than 60 per cent to $45.7 million, from $118 million in fiscal 2011.
Officials have said this acquisition will be "transformational" for DragonWave and will improve the struggling Ottawa company's fortunes. It has been working to diversify its customer base since its chief client, Clearwire, slowed a network buildout in 2010.
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