Part of DragonWave’s road map for growth in 2011 in­cludes “di­gestible merg­ers and ac­qui­si­tions.”

Ottawa Business Journal - Techopia - - Year Of The Dragon -

when DragonWave bought Connecticut-based Ax­erra Net­works in an all-cash trans­ac­tion val­ued at $9.5 mil­lion.

Ax­erra’s tech­nol­ogy helps speed up mo­bile back­haul, a field DragonWave is di­rectly in­volved in as it tar­gets 4G.

“ What Ax­erra does is it brings us re­la­tion­ships. It brings us some new prod­ucts. But more im­por­tant than that, it brings us some re­la­tion­ships with cus­tomers that we didn’t have,” Mr. Allen said.

Just like com­pa­nies in the cable mar­ket, pointed out an­a­lyst Matthew Thorn­ton, DragonWave is “pick­ing off small com­pa­nies that have com­ple­men­tary tech­nolo­gies and also com­ple­men­tary re­gional foot­prints.

“I think emerg­ing ac­qui­si­tions is the way for­ward for them; you look at Ax­erra, it’s com­ple­men­tary,” said Mr. Thorn­ton, of Bos­ton­based Avian Se­cu­ri­ties.

On DragonWave’s part, “ We are al­ways look­ing at pos­si­ble ac­qui­si­tion can­di­dates,” John Lawlor, vice-pres­i­dent of in­vestor re­la­tions, wrote in an e-mail to OBJ.

But strate­gic ac­qui­si­tions isn’t the com­pany’s only ap­proach. An­other prong of DragonWave’s fu­ture growth, Mr. Lawlor said, is to “ broaden and deepen our di­rect pres­ence in key strate­gic mar­kets.”

In most cases this in­cludes emerg­ing mar­kets. In 2010, DragonWave opened a sales mar­ket in Mex­ico City to bet­ter tar­get Latin Amer­ica, for ex­am­ple. It also has of­fices in Sin­ga­pore, Dubai, and the U.K.

But North Amer­ica is also a large part of the firm’s strat­egy – in De­cem­ber, DragonWave signed a deal with re­peat cus­tomer Barrett Xplore. As Barrett builds out a new 4G ter­res­trial net­work in Canada’s ru­ral north, DragonWave will power that net­work with two forms of its wire­less back­haul tech­nol­ogy.

And then there’s Clearwire. A few quar­ters back, the ser­vice provider or­dered equip­ment from DragonWave to build out its pan-United

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