SPOTLIGHT: Nortel Buys Again

Nortel has purchased 3D positional voice technology company DiamondWare. It's the second Nortel acquisition in as many weeks.

Nortel gets 3D audio technology to help create "real life" virtual communication experiences on the web and in conferencing. DiamondWare's technology uses wideband, stereo capabilities and custom spatial positioning. The technology lets each individual "hear" other participants in relation to how far away they are in a virtual space. It also allows participants in a virtual game or meeting to engage in private conversations.

Nortel is going to incorporate DiamondWare's technology across carrier and enterprise portfolios to enhance its multimedia, voice conferencing and VoIP solutions, plus cook it into "advanced research projects" such as a 3D web networking solution as part of the company's incubation program.

Bottom line is, Nortel gets some very cool strategic technology it can put into anything that uses audio. The DiamondWare buy also highlights the fact Nortel is not shy these days to spend some cash to acquire software when they need it, a la the Pingtel acquisition a week ago.

Under the terms of the agreement, DiamondWare gets $7 million in cash up front. Nortel will put out up to another $3 million to DiamondWare security holders based upon meeting future business milestones over the next 40 months.

For more:
- Nortel buys DiamondWare announcement
- Analyst/Blogger Jon Arnold all over the Nortel/DiamondWare relationship

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