Convergence or consolidation, DragonWave acquires Axerra

Call it what you like--convergence, synergy, consolidation--but the vendor space continues to shrink via mergers and acquisitions. Now wireless technology vendor DragonWave has added Axerra Networks, a real vendor of pseudowire technology, to its stable via an all-cash $9.5 million acquisition.

The move brings traditional telco wireless backhaul vendor DragonWave into the cable fold and an acknowledgement in the traditional wireless radio vendor space that backhaul will be a key differentiator in the growth of 4G networks. Axerra's pseudowire allows telcos to packetize legacy TDM traffic to run alongside new IP data packets in a single network that operates in both microwave and fiber backhaul. More so, Axerra brings DragonWave its first real cable customer-an unnamed "tier one MSO" that Axerra announced in June 2009.

"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 ... (and) strengthen our customer diversification," said DragonWave President-CEO Peter Allen in a news release that stopped short of using the term synergy.

For more:
- see this news release

Related articles:
Investors jittery over DragonWave's customer prospects
DragonWave's forecast drives stock sell-off


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