Transform-X, Inc. has agreed to acquire DragonWave Inc. (formerly TSX/NASDAQ: DRWI) out of receivership. Financial terms were not disclosed.
Transform-X is a newly formed Tucson, Arizona based company. It recently raised US $1.1 million in private financing. The transaction is expected to close by mid October, concluding the receivership process.
On July 31, 2017, KSV Kofman Inc. was appointed as receiver and receiver and manager over all of the property, assets and undertakings of DragonWave under the Bankruptcy and Insolvency Act.
DragonWave owed over $17.2 million to senior lenders, Comerica Bank and Export Development Canada (EDC), and $17.7 million in accounts payable and unsecured obligations.
“We are very excited to bring the DragonWave team onboard and begin integrating our disruptive technologies into their market leading product portfolio,” said Dan Hodges, CEO of Transform-X. “Our combined efforts and technologies will offer new and more effective ways to address the critical challenges of 5G backhaul and the growing field of wireless networking and MPLS applications. Transform-X offers expertise, technology and financial resources to take DragonWave to a new level, while providing improved support to existing customers, and furthering our combined technology leadership position in the wireless market.”
Patrick Houston, DragonWave CFO, “We are pleased to announce the conclusion of the DragonWave sale process, and our new partnership with Transform-X. We would like to thank all of our highly valued customers and partners for their ongoing support throughout this process, and we look forward to sharing more exciting developments in the months ahead.”
photo credit: DragonWave