Nokia Siemens Networks, the network- equipment joint venture of mobile-phone manufacturer Nokia Oyj (NOK1V) and engineering company Siemens AG (SIE), agreed to sell its microwave-transport business to DragonWave Inc. (DWI)
DragonWave will take on 360 Nokia Siemens employees and become a supplier of microwave products to NSN in exchange for for 10 million euros ($13.8 million) in cash and 5 million euros in stock in the Canadian equipment supplier, the companies said in a statement. The deal is expected to be completed in the first quarter of 2012.
The transaction value could be raised by 80 million euros depending on the unit reaching earnings targets in coming years, the companies said.
Nokia, which has its headquarters in Espoo, Finland, and Munich-based Siemens appointed Jesper Ovesen as full-time executive chairman of Nokia Siemens on Sept. 29 and gave it a 1 billion-euro capital injection. The parents are seeking to improve the profitability of the venture, which has lost money in all but one quarter since it started in April 2007.
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