Nortel to Buy Sonoma Systems for $540 Million

Nortel Networks Corp. said it agreed to acquire Sonoma Systems Inc., a Marina del Rey-based maker of Internet access equipment, for as much as $540 million in stock. The Canadian telecommunications giant struck the deal just six months after it began an arrangement to incorporate Sonoma’s technology in a range of its network products. Sonoma makes network access devices that deliver video, data and voice communications simultaneously over a single connection. Sonoma has about 125 employees. Brampton, Canada-based Nortel will pay $480 million in stock at closing, with an additional $60 million in stock subject to certain business objectives. Nortel shares gained $1.06 to close at $80.31 on the NYSE.