Chip Maker Avago to Buy CyOptics for $400 Million
Avago Technologies Ltd. agreed to buy fellow communications components maker CyOptics Inc. for $400 million in cash, expanding its exposure to the data communications and telecommunications markets.
CyOptics develops Indium Phosphide optical chips and components to enable bandwidth for high speed networks. It is a privately held company founded in 1999, with JVP Funds and TA Associates as its majority shareholders. The company’s revenue has more than tripled over the past three years, with net sales in 2012 reaching about $210 million, up 21 percent from a year earlier.