DragonWave Inc. (TSX:DWI) has 100 new employees on the other side of the world, the Ottawa-based mobile backhaul company announced Friday.
DragonWave's Peter Allen. (Photo by Mark Holleron)
Its acquisition of a division of Nokia Siemens Networks in Shanghai, China is now complete.
All Chinese regulatory requirements have been met for the deal that sees DragonWave take on certain Chinese operations of NSN’s microwave transport business.
The deal, which was first announced in November 2011, originally required DragonWave to pay €10 million in cash, undertake a share consideration of €5 million and also pay a performance-based earnout.
In light of poor economic conditions in Europe and ongoing restructuring within NSN, DragonWave agreed to amend the terms of the agreement in May.
The new terms changed the acquisition price to €11.7 million in cash, among other alterations.
The timing of the planned takeover was pushed to June 1, and finalized this Friday.
“We want to welcome our new colleagues in China to the DragonWave team,” stated president and CEO Peter Allen in a company release.
Approximately 100 NSN employees based in Shanghai have transferred to DragonWave. This adds to DragonWave’s staff of 270 after its workforce was reduced by 10 per cent in the past three quarters. The company sought to slash expenses in the wake of its chief customer, Clearwire, slowing its network buildout.
DragonWave says it will grow the new division of its business and market its technology and products in China.