LG-Nortel has closed the acquisition of Novera Optics Inc, a developer of fiber-optic access solutions that extend high-speed carrier Ethernet services from optical core networks to customer premises. LG-Nortel is a joint venture of LG Electronics and Nortel.

The acquisition costs, including employee retention and transaction costs, were approximately US$16 million in cash, plus up to an additional US$10 million to Novera security holders based on achievement of future business milestones over the next 18 months.

Current access technologies, intended to extend the high bandwidth of core optical networks, have proven to be inadequate for carriers around the world who still face challenges delivering fiber-to-the-node and fiber-to-the-home (FTTx) services to residential and business customers.

Novera's Wavelength Division Multiplexing Passive Optical Network (WDM-PON) technology addresses this challenge by boosting customer bandwidth and simplifying delivery of high-speed optical communication services. This helps users realize the benefits of Hyperconnectivity, the new era of communication in which everything that can be connected to the network, is connected.

Philippe Morin, president, Metro Ethernet Networking Solutions, said "With this acquisition, we are extending our vision of simple, carrier-grade Ethernet networking to business and residential users by investing in future growth and innovation opportunities. Novera's leadership with this technology, coupled with LG-Nortel's PON solutions and Nortel's strength in optical, demonstrates our commitment to this market."

Source:techon