Nortel has acquired DiamondWare (News - Alert), a company that specializes in high-definition, proximity-based 3D positional voice technology.

 

The acquisition will enable Nortel (News - Alert) to leverage DiamondWare's technology across its Carrier and Enterprise portfolios to enhance multimedia, voice conferencing and VoIP solutions. Additionally, it will be used in a variety of research projects that are part of Nortel's Incubation Program.

 

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

 

“A key goal of Nortel has always been to use technology to replicate the richness of a real-world communications experience,” said John Roese (News - Alert), Nortel's chief technology officer, in a statement. “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.”

 

DiamondWare makes integrated enterprise communications solutions by employing 3D high fidelity audio. The company has combined high quality of service (QoS) with low latency, to create 3D positioning of voices that replicates the experience of face-to-face meetings.

 

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 at DiamondWare, in a statement.