UPDATE 1-Opnext to buy StrataLight Communications for $172 mln

(Recasts; adds details)

July 9 (Reuters) - Opnext Inc (OPXT.O), which makes fiber optic network components, said it agreed to buy privately held StrataLight Communications Inc in a cash and stock deal valued at $172 million.

Opnext said it will acquire Los Gatos, California-based StrataLight Communications for 26.55 million common shares and $30 million in cash.

The acquisition is expected to enhance Opnext's market position in the 40 gigabits per second and 100 gigabits per second optical subsystems for the communications industry.

StrataLight Communications, which has more than 200 employees, manufactures ultra-high capacity optical transmission subsystems with line rates in excess of 40 gigabits per second.

StrataLight Communications' shareholders would own about 29 percent of the combined company following the deal, which is expected to close in the fourth quarter of this year.

Goldman Sachs & Co acted as the financial adviser for Opnext, and Morgan Stanley & Co advised StrataLight Communications on the deal.

Shares of Eatontown, New Jersey-based Opnext closed down 1.5 percent at $5.27 Wednesday on Nasdaq. (Reporting by Deepti Govind in Bangalore; Editing by Deepak Kannan)