Canada's DragonWave pays €110 million for Nokia Siemens microwave business

Canadian telecom network equipment maker DragonWave Inc. is paying €110 million ($154 million) in cash and stock for acquiring the microwave technology business of Nokia Siemens Networks.

Under the terms of the deal, Ottawa-based DragonWave will pay €10 million in cash ($13.77 million), and €5 million in DragonWave common shares ($6.89 million).

DragonWave will also assume employee liabilities of another €10 million, and will also enter into a capital asset lease arrangement for another €5 million.

The agreement is also subject to an earn-out period of 18 months for the hardware and basic software, and four years for the application software upgrades. The earn-out payments could raise the value of the transaction by about €80 million ($110.13 million).

In a statement Nokia Siemens said, "Nokia Siemens Networks and DragonWave believe the proposed acquisition and supply agreements would accelerate innovation in backhaul products and support microwave solutions for mobile operators."

The companies expect to complete the planned acquisition and supply agreements in the first quarter 2012.