April 19, 2013—Analog component supplier Avago Technologies Limited (San Jose, Calif., U.S.A) announced on 11 April an agreement to acquire optical chip and component supplier CyOptics (Breinigsville, Penn., U.S.A.) for $400 million. Avago expects the acquisition will strengthen their fiber optic product portfolio for 40G and 100G enterprise and datacenter applications.
CyOptics brings to Avago indium phosphide (InP) technology, including optical chips and integration expertise involving single-mode InP lasers, receivers and photonics. Avago optical transceivers are primarily based on vertical cavity surface-emitting laser (VCSEL) technology. The major markets for the InP technology of CyOptics are data communications and telecommunications.
CyOptics president and CEO Ed Coringrato said, “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.”
Avago also announced simultaneously that its board of directors has approved a plan to repurchase up to 20 million shares of the company’s stock for fiscal year 2013, or up to 10 percent of its outstanding ordinary shares up to the date of Avago’s 2014 annual general meeting of shareholders.