UPDATE 1-Avago Technologies to buy CyOptics for $400 mln

Thu Apr 11, 2013 9:28am EDT

April 11 (Reuters) - Chipmaker Avago Technologies Ltd said it will buy optical chip and component maker CyOptics Inc for about $400 million in cash.

CyOptics had filed for an IPO in August 2011 but withdrew its plans in May 2012.

The Breinigsville, Pennsylvania-based company, which makes indium phosphide-based lasers and photo-detectors, had net sales of about $210 million last year.

CyOptics, whose components are used in optical transceivers, transponders and line cards, counts Ciena Corp, Finisar Corp, Huawei Technologies Co Ltd and Lockheed Martin Corp as customers, according to its 2011 IPO filing.

Avago, which serves Huawei Technologies Co Ltd, Samsung Electronics Co, HP Co and Cisco Systems Inc, will fund the transaction with cash on hand and expects to close the deal during its quarter ending July.

Avago's shares were up marginally in premarket trading on Thursday, after closing at $35.38 on the Nasdaq on Wednesday.

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