Analog component supplier Avago Technologies (NASDAQ:AVGO) is acquiring CyOptics, a maker of optical chip and component technologies for the telecommunications industry, for $400 million in cash, the company announced today.
CyOptics had filed in 2011 to go public in an estimated $100 million IPO, but withdrew the plans in May 2012.
Avago says the purchase will bolster its fiber optics product portfolio in enterprise data center applications. In addition, the acquisition will help Avago establish a complementary optical components business. CyOptics has a large customer base of module and system OEMs, with 2012 revenue growing 21% to $210 million.
The transaction is expected to close in the fiscal third quarter.
Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.