DragonWave Closes Acquisition of Nokia Siemens Networks' Microwave Transport Business in China
November 30 2012 - 8:28AM
Marketwired
DragonWave Inc. (TSX:DWI)(NASDAQ:DRWI) a leading global supplier of
packet microwave radio systems for mobile and access networks,
today announced that the company has completed the transaction to
acquire certain Chinese operations of Nokia Siemens Networks'
microwave transport business in China as all Chinese regulatory
requirements have been met.
Approximately 100 employees of Nokia Siemens Networks based in
Shanghai have transferred to DragonWave. "We want to welcome our
new colleagues in China to the DragonWave team" said Peter Allen,
DragonWave President and CEO. As previously communicated, the
overall closing of the transaction took place on June 1, 2012.
About DragonWave
DragonWave® is a leading provider of high-capacity packet
microwave solutions that drive next-generation IP networks.
DragonWave's carrier-grade point-to-point packet microwave systems
transmit broadband voice, video and data, enabling service
providers, government agencies, enterprises and other organizations
to meet their increasing bandwidth requirements rapidly and
affordably. The principal application of DragonWave's products is
wireless network backhaul. Additional solutions include leased line
replacement, last mile fiber extension and enterprise networks.
DragonWave's corporate headquarters is located in Ottawa, Ontario,
with sales locations in Europe, Asia, the Middle East and North
America. For more information, visit
http://www.dragonwaveinc.com.
Forward-Looking Information
Certain statements in this release constitute forward-looking
information within the meaning of applicable securities laws.
Forward-looking information includes, without limitation,
statements as to growth opportunities and the potential benefits
associated with DragonWave's acquisition of the microwave transport
business including its associated operational support system (OSS)
and related support functions (collectively, the "Business") for
either Nokia Siemens Networks or DragonWave (referred to below as
the "parties") and expectations regarding the business relationship
between the parties. Forward-looking information is based on
certain assumptions, including: the parties' beliefs regarding the
industry and markets in which they operate and expectations
regarding potential synergies and prospects for the Business. This
forward-looking information is identified by the use of terms and
phrases such as "believe", "expect", "anticipate", "foresee",
"target", "estimate", "designed", "plans", "will" or similar
expressions. This acquisition is subject to risks and uncertainties
including: that the expected synergies will not materialize, that
unexpected costs will be incurred to integrate the Business, or
that end-customer demand will not meet expectations. In particular,
material risks and uncertainties for DragonWave following closing
of the acquisition will include, without limitation:
-- reliance on Nokia Siemens Networks for a large percentage of
DragonWave's revenues;
-- increased cash requirements to fund acquired operations, and associated
requirements to comply with debt financing covenants with DragonWave's
lenders, which should be understood in light of DragonWave's history of
losses;
-- increased exposure to global currency fluctuations;
-- increased regulatory compliance obligations, including financial
reporting obligations; and
-- risks associated with acquisitions generally as detailed on pages 19 to
21 of DragonWave's Annual Information Form dated May 11, 2012 (the
"AIF").
Other risks relating to DragonWave's business and industry can
be found in the public documents filed by DragonWave with U.S. and
Canadian securities regulatory authorities, including the AIF.
These and other risks could cause DragonWave's actual results,
performance, achievements and developments to differ materially
from the results, performance, achievements or developments
expressed or implied by such forward-looking information. Readers
are cautioned not to place undue reliance on forward-looking
information. DragonWave assumes no obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required by law.
Contacts: Nadine Kittle Marketing Communications DragonWave
Inc.nkittle@dragonwaveinc.com 613-599-9991 ext 2262 John Lawlor VP
Investor Relations DragonWave Inc.jlawlor@dragonwaveinc.com
613-895-7000 Becky Obbema Interprose Public Relations (for
DragonWave)Becky.Obbema@interprosepr.com (408) 778-2024