Nokia Buys Diamond Lane Commun Of U.S. For $125 Mln
Dow Jones Newswires
February 16, 1999
HELSINKI -- Nokia Oyj (NOKA), the Finnish telecommunications equipment maker, said Tuesday it signed an agreement to buy Diamond Lane Communications Corp., a U.S. Internet device manufacturer and technology provider, for $125 million.
Nokia said the acquisition will offer it an increased presence in the U.S., the world's foremost Internet market, and a technological edge in developing next-generation network infrastructure.
The company has been an investor in Diamond Lane since 1997 and the two companies already cooperate in Internet technology. The product line of the Petaluma, California, based company includes a Digital Subscriber Line Access Multiplexer (DSLAM), which enables Internet access around 125 times faster than current Internet modems.
"Our combining with Nokia will enable us to compete for a major share of the global digital subscriber line market," said Jerry Parrick, Diamond Lane President and Chief Executive officer, in a press statement.
The privately held Diamond Line was founded in 1995 and is one of the first companies in the world to commercially offer digital subscriber line data access.
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