At Thursday's trading session, Avago Technologies share values remained relatively unchanged when it announced the acquisition of CyOptics.
The design and development firm for analog semiconducting devices announced that the acquisition of the market leader in Indium Phosphide optical parts and its components was for US$400 million in cash.
CyOptics is one of the service providers specifically serving the the telecommunications industry would serve to bolster the fiber optics portfolio of Avago especially for the burgeoning enterprise and data center industry.
According to CEO Hock Tan, "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 centers. With CyOptics, we also see interesting revenue growth opportunities in delivering a broad range of proprietary components to the market."
The deal is expected to be completed by the third quarter of the 2013 fiscal year of Avago, subject to regulatory approval and normal closing conditions.
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