DragonWave to double headcount on Nokia Siemens microwave acquisition
01.01.70
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DragonWave will pay €10 million in cash, undertake a share consideration of €5 million and also pay a performance-based earnout.
The company will also assume employee liabilities, meaning vacations and bonuses, of €10 million and pay €5 million for a capital asset lease arrangement.
Part of the transaction will be funded through US$50 million in debt facilities provided by Comerica Bank and Export Development Canada. That will mainly be used for integration and closing costs in the next two quarters, company officials said.
Earnout payments could raise the transaction value by a further €80 million. This would likely happen if the agreement produced a revenue run rate of $100 milion, gross margin of 30 per cent and an operating margin of 10 per cent, officials said.
DragonWave will further become the preferred supplier for the Finnish-based company's packet microwave and similar products. The companies will do technology development together.
Source: Ottawa Business Journal
LG hikes price for a second time in 2 months
01.01.70
Consumer durables firm, LG Electronics India, is increasing prices of its home appliances with immediate effect to offset impact of high input costs and weakening of rupee while its rival Samsung is currently studying the situation before taking any similar step.
LG home appliances that are available in the range of Rs 2,200 to Rs 1.7 lakh in the Indian market will be dearer by average of 5 per cent.
“Due to continuous increase in input cost and rupee depreciation, it has become imperative for us to consider the price hike in India. The new prices will be applicable from November 1, 2011 onwards,” said Mr Soon Kwon, Managing Director, LG Electronics India.
The impact of the price hike would be seen in all LG home appliances products, including washing machine, refrigerators and microwave ovens, he said. This is the second price hike announced by the company in just over a month. On September 27, 2011 LG had had hiked prices of its products including, front loading washing machines and microwave ovens, by upto 6 per cent owing to rupee depreciation.
Source: Hindu Business Line
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