Nortel buys Tasman to boost VoIP line

Planned acquisition of networking gear maker promises to improve Nortel's Net calling products.

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Toronto-based Nortel Networks said Tuesday it plans to acquire Tasman Networks for $99.5 million in cash. San Jose, Calif.-based Tasman, founded in 1997, sells networking gear that Nortel said will improve its products for multimedia information such as voice over Internet Protocol (VoIP). Tasman's products are designed for smaller companies or branch offices of larger companies.

The deal is expected to close in the first quarter of 2006, Nortel said.