Nortel acquires DiamondWare to improve virtual web and voice communications 
ConvergenceAsia staff
25/08/2008

Nortel has acquired DiamondWare, a pioneer in high-definition, proximity-based 3D positional voice technology that brings life-like sound to virtual web and voice communications. The acquisition furthers Nortel’s drive to transform communications to allow people to collaborate in more interactive and immersive ways.

“A key goal of Nortel has always been to use technology to replicate the richness of a real-world communications experience,” said John Roese, Nortel’s chief technology officer. The acquisition of DiamondWare strengthens Nortel’s position in the converging telecommunications and IT landscapes and gives us another building block to create the ultimate communications experience for our customers, he said.

DiamondWare's technology has been deployed in gaming environments and in US military tactical intercom systems, and by a broad range of carriers and equipment manufacturers. DiamondWare’s technology uses wideband, stereo capability and custom spatial positioning that can deliver real-time interactions in 3D virtual worlds and meetings, online gaming systems, and multimedia applications.

DiamondWare’s 3D voice technology will help give Nortel’s customers a more natural and immersive communication experience, whether they’re using it for traditional telephony and conferencing applications, mobile unified communications or for Web 2.0 virtual world environments, said Keith Weiner, CEO of DiamondWare.

Nortel will leverage DiamondWare’s technology across its carrier and enterprise portfolios to enhance its multimedia, voice conferencing and VoIP solutions. In addition, it will be used for a variety of new advanced research projects that are part of Nortel's Incubation Program. One of these projects, dubbed “web.alive”, is a 3D web networking solution that allows users to collaborate, socialise and conduct business in a virtual environment with life-like visual and audio features, within the security of their own corporate networks.

Under the terms of the agreement, Nortel will acquire all of the outstanding shares of DiamondWare. The acquisition costs, including employee retention and transaction costs, were approximately $7m in cash, plus up to an additional $3m to DiamondWare security holders based on achievement of future business milestones over the next 40 months.

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