San Jose, CA, Singapore, and Lehigh Valley, PA--Communications, industrial, and consumer optoelectronic and fiber-optic component manufacturer Avago Technologies (Nasdaq: AVGO) announced the execution of a definitive agreement to acquire CyOptics, manufacturer of indium phosphide (InP) optical chip and integrated component technologies for the data communications and telecommunications markets, for an aggregate acquisition price of approximately $400 million in cash.
Avago believes the acquisition of CyOptics will strengthen Avago's fiber-optics product portfolio for emerging 40G and 100G enterprise and data center applications (http://www.laserfocusworld.com/articles/print/volume-48/issue-12/features/optical-technologies-scale-the-datacenter.html). CyOptics' single-mode InP laser, receiver, and photonics integration capability will help extend Avago's technology leadership position in these applications. Avago’s optical transceiver products primarily leverage VCSEL-based technology today. In addition, the acquisition of CyOptics will facilitate Avago’s establishment of a complementary optical components business, not only to serve growing segments of the access, metro and long-haul markets, but also for enterprise and data center segments.
CyOptics designs, fabricates and packages a broad portfolio of optical component products across enterprise, data center, access, metro and long-haul market segments. CyOptics' optical components are integrated into optical transceivers, transponders, and line cards. Leveraging its Bell Labs and Lucent heritage, CyOptics says it has built a broad product portfolio and a customer base that includes the leading module and system OEMs. CyOptics revenue has more than tripled over the past three years. During calendar year 2012, CyOptics net sales were approximately $210 million, up 21% from 2011.
"We are delighted to join Avago Technologies, a company with a long history of innovation and a strong position in the wired infrastructure market. We believe this transaction presents tremendous opportunities for our customers and our employees," said Ed Coringrato, president and CEO of CyOptics.
Avago intends to fund the transaction with cash on-hand. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the United States, and is expected to close during Avago’s third fiscal quarter of 2013.
SOURCE: CyOptics; http://www.cyoptics.com/avago-technologies-to-acquire-cyoptics-a-leading-optical-chip-and-component-supplier-to-the-datacom-and-telecom-markets/
