SEOUL -- 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(1) (TSX: NT)(NYSE: 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."

LG-Ericsson Co. Ltd.