Thursday, April 11, 2013

Avago to Acquire CyOptics for InP Expertise

Avago Technologies agreed to acquire CyOptics, a specialist in Indium Phosphide (InP) optical chip and component technologies, for approximately $400 million in cash.

CyOptics designs, fabricates and packages a broad portfolio of optical component products across enterprise, data center, access, metro and long-haul market segments. It optical components are integrated into optical transceivers, transponders and line cards. Its expertise includes single-mode InP laser, receiver and photonics integration capability. The privately-held company reports 2012 sales of approximately $210 million, up 21% from 2011.

Avago said the acquisition will strengthen its fiber optics product portfolio for emerging 40G and 100G enterprise and data center 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.

"We believe CyOptics' leading InP technology and optical manufacturing capability will strengthen Avago's fiber optics portfolio and accelerate our ability to capture next generation 40G and 100G enterprise and data center sockets," stated Hock Tan, President and CEO of Avago. "With CyOptics, we also see interesting revenue growth opportunities in delivering a broad range of proprietary components to the market."

CyOptics was founded in 1999 and is based in Breinigsville, PA.

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