LG-Nortel (News - Alert) announced today it has acquired Novera Optics Inc., a developer of fiber-optic access solutions that extend high-speed carrier Ethernet services from optical core networks to customers. LG-Nortel is a joint venture of LG Electronics (News - Alert) and Nortel.

 

The acquisition costs, which included employee retention and transaction costs, were approximately $16 million in cash, and an additional $10 million to Novera security holders, according to the companies.

 

Access technologies, for extending the high bandwidth of core optical networks, have been inadequate for carriers who still face problems delivering fiber-to-the-node and fiber-to-the-home services to both residential and business customers, according to the company. Novera’s Wavelength Division Multiplexing Passive Optical Network technology addresses this boosting bandwidth and simplifying delivery of high-speed optical communication services, company officials say.

 

“Novera’s goal has always been to develop technologies that make it easier for carriers to deliver Ethernet-class FTTx services to their customers,” said John Barton, president and chief executive officer of Novera. “Our technology is a natural complement to Nortel’s and LG-Nortel’s Carrier Ethernet solutions. Nortel’s strong technology base and extensive distribution channels will ensure that service providers around the world can use our WDM-PON technology to more easily deliver high-speed FTTx services to their own customers.”

 

“We are always looking for new ways to help our carrier customers deliver innovative new services to customers,” said Jae Ryung Lee, chief executive officer of LG-Nortel. “Novera’s technology will be indispensable for our carrier customers because it will simplify delivery of Carrier class Ethernet FTTx services to their own customers.”

 

“As users access the myriad possibilities of the hyperconnected world, their appetite for bandwidth has become insatiable,” said Philippe Morin, president of Metro Ethernet Networking Solutions. “Novera Optics’ WDM-PON technology will help carriers deliver new FTTx services that carry voice, video, and broadband data from the network core to the end user at high speeds.”