Avago Agrees to Acquire CyOptics for $400 Million in CashLisa Rapaport
Avago Technologies Ltd., a supplier of components for wireless communications, agreed to acquire optical-chip maker CyOptics Inc. for about $400 million in cash.
The transaction is expected to close during Avago’s fiscal third quarter, which ends in July, the companies said today in a statement.
Avago, with headquarters in Singapore, is using the deal to expand in fiber optics and supply more components for corporate data centers. CyOptics, based in Breinigsville, Pennsylvania, increased net sales by 21 percent to $210 million last year, according to the statement.
CyOptics offers “interesting revenue growth opportunities in delivering a broad range of proprietary components to the market,”Avago Chief Executive Officer Hock Tan said in the statement.
CyOptics abandoned plans for an initial public offering in May, the company said in a regulatory filing at the time.
Avago’s shares fell less than 1 percent to $35.17 at 9:31 a.m. in New York. Through yesterday, the stock had advanced 12 percent this year, about the same gain as the Russell 1000 Index.