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Why Can’t Nortel Buy Something Cool?
By Mark Evans | March 17, 2008
Admittedly, acquisitions are difficult to make given you need to find the find technology and the right team at the right place.
But why can’t Nortel, which desperately needs a strategic spark of any kind, acquire a start-up(s) with exciting prospects that would give people a sense that senior management has a vision of the future that it’s willing to pursue by picking up some promising technology.
Here’s an example (and by no means am I advocating that this is an M&A target for Nortel). Aquantia just raised $25-million in venture capital to bolster development of ethernet chips, which process 10-gigabit Ethernet signals - a good thing given the increasing amount of traffic.
This is just example of a start-up with interesting technology. The question is whether Nortel has any appetite for these kind of opportunities. With M&A specialist George Riedel on board, Nortel has someone with deal-making experience yet almost nothing has happened on the M&A front.
It’s strikes me as a strategically puzzling.
Topics: M&A |