Nortel's First Acquisition in Two Years: Novera Optics

For the first time more than two years, Nortel (NT) has made an acquisition by coughing up $26 million for Novera Optics, which makes low-cost, high-performance optical access technology based on WDM-PON (Wavelength Division Multiplexed Passive Optical Network) technology.

Novera sells into markets such as FTTB (Fiber-To-The-Building) and FTTC (Fiber-To-The-Curb) extensions, MxU (Multi-Dwelling and Multi-Tenant Units), RT (Remote Terminals), and the CO (Central Office).

This is the first acquisition made by Nortel since it picked up Tasman Networks in December 2005 for $99-million. It must have been a joy for George Riedel, who was lured away from Juniper Networks in 2006 to make strategic deals.

In March 2006, Novera raised $7.4 million Enterprise Partners, Redpoint Ventures, Octane Capital Management, KTB Ventures, Meritech Capital Partners, and Saints Ventures.