LG-Nortel has acquired Novera Optics Inc., a Santa Clara, Calif.-based provider of fiber-optic access solutions that extend carrier Ethernet services from optical core networks to customer premises. The deal was valued at approximately $16 million in cash, plus up to $10 million in additional earn-outs over the next 18 months.
Novera had raised around $73 million in VC funding since 2000, from firms like Redpoint Ventures, Storm Ventures, KLM Capital Group, KTB Ventures, Enterprise Partners Venture Capital, Meritech Capital Partners, Octane Capital Management and Saints Ventures.
LG-Nortel announced that it 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* [NTSE/TSX: NT].
The acquisition costs, including employee retention and transaction costs, were approximately $16M in cash, plus up to an additional $10M 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 fibre-to-the-node and fibre-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.
“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, 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.”
“Nortel has always been on the forefront of advancing technology leadership by offering next-generation solutions for the metro,” continues Morin. “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.”
LG-Nortel is a joint venture of LG Electronics and Nortel. Established in 2005, LG-Nortel provides leading edge telecommunications equipment and network solutions, spanning wired and wireless technologies, to service provider and enterprise customers in
Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.