One of Ottawa's hottest tech firms has acquired a new company.
DragonWave could end up paying $25 million for Axerra Networks Inc., an Israel company that started 11 years ago.
Axerra helps telecomm firms move data on both older and new style systems.
The company was picked as one of Israel's top start up firms, and the bulk of the firm's 61 employees are still in Israel.
"This is a key strategic move to let us diversify into new markets," said DragonWave CEO Peter Allen.
DragonWave will pay $9.5 million up front and if revenues rise from the current $9 million to $25 million over the next 16 months, DragonWave would pay up to another $15.5 million -- something Allen thinks is quite possible.
Allen does not rule out more acquisitions as the company tries to add new products and go after new business.
DragonWave's Toronto stock price was up nearly two per cent in early trading Thursday after the news broke. The stock price is down about 40 per cent from its high at the start of this year.
