DragonWave plans to acquire Nokia Siemens Networks microwave transport business

DragonWave plans to acquire Nokia Siemens Networks microwave transport business

DragonWave, Inc. (TSX: DWI; NASDAQ: DRWI) plans to acquire Nokia Siemens Networks’ microwave transport business, including its associated operational support systems (OSS) and related support functions (the “business”). Under the terms of the “Master Acquisition Agreement” signed today, as well as acquiring the business, DragonWave would also become the preferred, strategic supplier to Nokia Siemens Networks of packet microwave and related products, and the companies would jointly coordinate technology development activities. The planned transaction is subject to any applicable regulatory, exchange and third party approvals, a consultation process with trade union representatives, and other customary terms and conditions.

Nokia Siemens Networks and DragonWave believe the proposed acquisition and supply agreements would accelerate innovation in backhaul products, supporting world class microwave solutions for mobile operators. The companies aim to complete the planned acquisition and supply agreements in the first quarter 2012 (the “closing date”).

Following the proposed acquisition, Nokia Siemens Networks would retain responsibility for its existing solution sales and associated services for microwave transport, while DragonWave would be responsible for the product line, including R&D, product management and operations functions.

“Through this strategic relationship, customers would continue to receive high-quality services and sales support from Nokia Siemens Networks, while DragonWave’s best of breed products would ensure they have access to industry leading technology,” said Marc Rouanne, head of Network Systems, Nokia Siemens Networks. “Our intention is to capitalize on DragonWave’s proven capabilities for innovative product development and focus on our end-to-end solutions.”

"DragonWave is very proud to partner with Nokia Siemens Networks. We hope to welcome new employees as a valuable addition to the DragonWave team,” said Peter Allen, president & chief executive officer of DragonWave. “This relationship is transformational, giving us the ability to serve customers who want to access an integrated solution. In addition, it provides DragonWave an expanded technology base to address those customers who wish to purchase stand-alone best-in-breed products. Our increased scale, diversity and customer footprint, coupled with significantly enhanced resources and capabilities, will provide a solid foundation for faster innovation and broader market penetration.”

The consideration paid by DragonWave on closing will include approximately 10 million euros in cash subject to customary purchase price adjustments and 5 million euros worth of DragonWave common shares which will be subject to a lock-up agreement restricting sale or disposition of the shares (subject to customary exceptions) for 24 months. DragonWave will also assume employee liabilities of approximately 10 million euros and will enter into a capital asset lease arrangement for approximately 5 million euros. The terms of the Master Acquisition Agreement also provides for sales performance based earn-out payments to be made following closing. The hardware and basic software earn-out period runs for 18 months following closing and the earn-out period on application software upgrades runs for four years following closing. The earn-out payments could raise the value of the transaction by approximately 80 million euros.

DragonWave expects to finance the transaction through a combination of cash on its balance sheet and increased debt facilities provided by Comerica Bank and Export Development Canada. Such debt facilities are subject to conditions and will be entered into on, and subject to, closing of the acquisition.

The planned deal would substantially broaden and strengthen DragonWave’s product presence in major mobile operators throughout the world through Nokia Siemens Networks’ extensive global sales channel.

As part of the proposed acquisition, the companies expect approximately 360 Nokia Siemens Networks employees, mainly based in Milan, Italy and Shanghai, China, to transfer to DragonWave. The companies will shortly enter into consultation regarding the proposed acquisition with employees and employee representatives in accordance with applicable law provisions and relevant timelines.

Both Nokia Siemens Networks and DragonWave believe the planned acquisition would provide transferring employees with attractive new opportunities in a solid, technologically advanced company, with its focus on their core areas of expertise.

This planned deal is a “significant acquisition” for DragonWave under applicable securities laws and, accordingly, DragonWave will file a Business Acquisition Report within 75 days of closing. Canaccord Genuity Corp. acted as exclusive financial advisor to DragonWave.

Sony to acquire Ericsson's share of Sony Ericsson

Sony to acquire Ericsson's share of Sony Ericsson

Ericsson (NASDAQ:ERIC) and Sony Corporation ("Sony") today announced that Sony will acquire Ericsson's 50 percent stake in Sony Ericsson Mobile Communications AB ("Sony Ericsson"), making the mobile handset business a wholly-owned subsidiary of Sony.

The transaction gives Sony an opportunity to rapidly integrate smartphones into its broad array of network-connected consumer electronics devices - including tablets, televisions and personal computers - for the benefit of consumers and the growth of its business. The transaction also provides Sony with a broad intellectual property (IP) cross-licensing agreement covering all products and services of Sony as well as ownership of five essential patent families relating to wireless handset technology.

As part of the transaction, Ericsson will receive a cash consideration of EUR 1.05 billion.

During the past ten years the mobile market has shifted focus from simple mobile phones to rich smartphones that include access to internet services and content. The transaction is a logical strategic step that takes into account the nature of this evolution and its impact on the marketplace.

This means that the synergies for Ericsson in having both a world leading technology and telecoms services portfolio and a handset operation are decreasing. Today Ericsson's focus is on the global wireless market as a whole; how wireless connectivity can benefit people, business and society beyond just phones. Consistent with that mission, by setting up a wireless connectivity initiative, Ericsson and Sony will work to drive and develop the market's adoption of connectivity across multiple platforms.

"This acquisition makes sense for Sony and Ericsson, and it will make the difference for consumers, who want to connect with content wherever they are, whenever they want. With a vibrant smartphone business and by gaining access to important strategic IP, notably a broad cross-license agreement, our four-screen strategy is in place. We can more rapidly and more widely offer consumers smartphones, laptops, tablets and televisions that seamlessly connect with one another and open up new worlds of online entertainment. This includes Sony's own acclaimed network services, like the PlayStation Network and Sony Entertainment Network," said Sir Howard Stringer, Sony's Chairman, Chief Executive Officer and President. Mr Stringer also noted that the acquisition will afford Sony operational efficiencies in engineering, network development and marketing, among other areas. "We can help people enjoy all our content - from movies to music and games - through our many devices, in a way no one else can."

"Ten years ago when we formed the joint venture, thereby combining Sony's consumer products knowledge with Ericsson's telecommunication technology expertise, it was a perfect match to drive the development of feature phones. Today we take an equally logical step as Sony acquires our stake in Sony Ericsson and makes it a part of its broad range of consumer devices. We will now enhance our focus on enabling connectivity for all devices, using our R&D and industry leading patent portfolio to realize a truly connected world" said Hans Vestberg, President and CEO of Ericsson.

When Sony Ericsson started its operations on October 1, 2001, it combined the unprofitable handset operations from Ericsson and Sony. Following a successful turnaround the company has become a market leader in the development of feature phones by integrating Sony's strong consumer products knowledge and Ericsson's telecommunications technology leadership. The WalkmanTM phone and Cyber-shotTM phone are well known examples.

With the successful introduction of the P1 in 2007, Sony Ericsson early on established itself in the smartphone segment. More recently, the company has successfully made the transition from feature phones to Android-based Xperia(TM) smartphones. By the end of the third quarter of 2011, Sony Ericsson held a market share of 11 percent (by value) in the Android phone market, representing 80 percent of the company's third quarter sales. During its ten years in operation Sony Ericsson has generated approximately EUR 1.5 billion of profit and paid dividends totalling approximately EUR 1.9 billion to its parent companies. Prominent models include "XperiaTM arc" and "XperiaTM mini" which received 2011 EISA Awards, while recent notable additions to the lineup include "XperiaTM PLAY" and "XperiaTM arc S".

The transaction, which has been approved by appropriate decision-making bodies of both companies, is expected to close in January 2012, subject to customary closing conditions, including regulatory approvals.

Ericsson has accounted for its 50 percent share in Sony Ericsson according to the equity method. Following completion of the transaction, Ericsson will have no outstanding guarantees relating to Sony Ericsson and will no longer account for Sony Ericsson as an investment on balance sheet. The transaction will result in a positive capital gain for Ericsson which will be defined after closing of the transaction.

Everything Everywhere chief Olaf Swantee says company name is 'silly' - Telegraph

Everything Everywhere chief Olaf Swantee says company name is 'silly'

Yes, we do agree that EE is a pointless name for the company and probably did nothing to help it convince the regulator and competition commission that they would be too big.

While we are at it, may as point out that Panther and Dolphin are also silly names to give calling plans, unless Orange is just after people, maybe children, who want to be an animal when they grow up. Let me know when the wise owl plan comes out.

Nokia showcases bold portfolio of new phones, services and accessories at Nokia World

Nokia showcases bold portfolio of new phones, services and accessories at Nokia World

London, UK - At Nokia World, the company's annual event for customers, partners and developers, Nokia demonstrated clear progress on its strategy by unveiling a bold portfolio of innovative phones, services and accessories, including the first smartphones in its Windows Phone-based Nokia Lumia range. The stunningly social Nokia Lumia 800 brings content to life with head-turning design, Nokia's best social and Internet experience, familiar Nokia elements, such as leading imaging capabilities and new signature experiences. The colorful and affordable Nokia Lumia 710 is a no-nonsense smartphone that brings the Lumia experience to more people around the world.

Nokia also launched four new mobile phones which feature stylish design, a rich social experience and location-aware technology. The Nokia Asha 300, Nokia Asha 303, Nokia Asha 200 and Nokia Asha 201 blur the line between smartphones and feature phones, offering QWERTY and touch screen experiences, combined with fast and easy access to the Internet, integrated social networking, messaging and world-class applications from the Nokia Store.

"Eight months ago, we shared our new strategy and today we are demonstrating clear progress of this strategy in action. We're driving innovation throughout our entire portfolio, from new smartphone experiences to ever smarter mobile phones," said Stephen Elop, Nokia President and CEO. "From the Nokia Lumia 800 to the Nokia Asha 201, we are bringing compelling new products to the market faster than ever before. I'm incredibly proud of these new devices - and the people of Nokia who have made this happen."

"Since Nokia's major strategic shift only eight months ago, the company has found a new energy. It has provided substantial improvements to Symbian, managed to differentiate on Windows Phone and it continues to build on its strong portfolio in mobile phones," says Pete Cunningham, Principal Analyst, Canalys. "Nokia is delivering on its pledges, and is clearly demonstrating its path to future success."

Qualcomm’s Snapdragon Processor Powers First Nokia Lumia Smartphones

Qualcomm News and Events - Press Releases Qualcomm’s Snapdragon Processor Powers First Nokia Lumia Smartphones

LONDON – October 26, 2011 – Qualcomm Incorporated (NASDAQ: QCOM) announced today that Qualcomm’s Snapdragon™ mobile processors power the first Nokia Lumia smartphones, the Nokia Lumia 800 and the Nokia Lumia 710.

This marks Nokia’s entrance into the Windows Phone ecosystem and is the latest step in the mobile industry’s high-speed transition towards mobile computing. The Snapdragon processor’s unique engineering enabled Nokia to substantially accelerate the time to market of the products.

"We are proud that our deep collaboration with Nokia resulted in smartphones that were developed in only six months based on our Snapdragon platform," said Enrico Salvatori, senior vice president and president of Qualcomm CDMA Technologies Europe. “The level of integration in Snapdragon and the optimization for Windows Phone 7, as well as the efforts of two strong teams, delivered these great devices."

The Snapdragon S2 class of processors provides a best-in-class mobile experience, including high-performance mobile computing with prolonged battery life and next-generation graphics for Nokia’s Lumia phones. Lumia users will also experience rapid network connections and fast, responsive Web browsing.

“The collaboration between Nokia, Qualcomm and Microsoft has been extremely successful,” said Jo Harlow, head of Nokia’s Smart Devices business unit. “Qualcomm played a significant and very active role in helping develop the first Nokia Lumia smartphones, without which we would not have been able to bring the products to market so quickly.”

As one of the largest providers of wireless chipset and software technology in the industry, Qualcomm has one of the most diverse chipset and software product portfolios spanning multiple device classes. Specifically, the S2 processors are optimized to enable HD videos in the browser, a rich gaming experience, top-quality pictures and video.