The acquisition expected to support fibre optics product range for enterprise and data centre applications
Chip maker Avago Technologies has agreed to acquire the optical technologies provider, the CyOptics for about $400m.
The acquisition is expected by Avago to support its fibre optics product range for emerging 40G and 100G enterprise and data centre applications with CyOptics' single-mode InP laser, receiver and photonics integration capability.
According to the Chip maker, the acquisition of CyOptics will allow it to establish a corresponding optical components business to offer services to growing segments of the access, metro and long-haul markets as well as enterprise and data centre segments.
Avago president and CEO Hock Tan said, "With CyOptics, we also see interesting revenue growth opportunities in delivering a broad range of proprietary components to the market."
The transaction is expected to close in Avago's third quarter of 2013 and is subjected to customary closing conditions as well as the regulatory approvals in the US.
CyOptics designs, fabricates and packages optical component products across enterprise, data centre, access, metro and long-haul market segments and had reported net sales of about $210m, a 21% increased compared to 2011.
