Finnish telecommunications equipment maker Nokia Tuesday acquired Diamond Lane Communications Corp. in a move to capture a chunk of the growing Digital Subscriber Line market.
Nokia paid about $125 million in cash for the company which has developed a new Digital Subscriber Line product that enables Internet access speeds of up to 125 times faster than current 56 kilobit-per-second modems.
Nokia invested in Diamond Lane in 1997 and the two companies have already integrated Diamond Lane’s products into Nokia’s offerings, giving the company a variety of solutions that address everything from network management to billing.
Mika Vehvilainen, senior vice president of Nokia’s IP solutions group, said the acquisition will help the company increase its business in the United States and give it a new line of products that will drive the next wave of communications infrastructure.
Diamond Lane President and CEO Jerry Parrick said combining with Nokia will give enable the companies to compete for a major share of the global DSL market.
“Nokia’s financial strength and position as a global leader in the telecommunications industry will enable us to greatly enhance the scope of our products and reach a larger customer base immediately,” he said.