DragonWave has acquired Axerra Networks for $9.5 million in cash, plus a potential extra $6 million in cash or shares based on sales targets.
Axerra markets pseudowire technology that allows carriers to address the increasing need to carry legacy TDM traffic over a packet based network. Dragonwave hopes that the acquisition will strengthen its existing paclet microwave products.
A statement from the company said, "The combined product portfolio will result in a robust converged solution delivering TDM and packet services over a single packet network that can operate over both microwave and fibre backhaul. The new product portfolio will strengthen DragonWave’s solution for existing 2G and 3G networks and their evolution to 4G packet architectures."
“This acquisition represents a key step in our customer and portfolio diversification strategy,” said Peter Allen, President and CEO of DragonWave, “The unique technology differentiators of Dragonwave and Axerra are totally aligned and complement each other to meet the backhaul requirements of next generation 3G/4G networks. This will also strengthen our customer diversification as it brings a signification position with a Tier 1 US MSO.”
“We are excited to join the DragonWave team, we believe our combined solution set will help enhance our product portfolio and expand the range of opportunities available to us in the future,” said Hezi Lapid, CEO of Axerra.