Avago Buying CyOptics for 40G/100G
Avago Technologies Pte. announced plans Thursday to acquire CyOptics Inc. for about $400 million in cash.
CyOptics's products include indium phosphide (InP) lasers and receivers, which Avago is eyeing as a photonic integration play for 40Gbit/s and 100Gbit/s.
It's a photonic integration play for 40Gbit/s and 100Gbit/s. CyOptics makes lasers and receivers in indium phosphide (InP)
CyOptics's sales in 2012 were about $210 million, up 21 percent from 2011, according to Avago's press release.
Why this matters
Avago already offers 40Gbit/s and 100Gbit/s devices, including a CFP2 module for 100Gbit/s that uses 10 parallel 10Gbit/s lanes. CyOptics's offerings include 100Gbit/s coherent receivers that could help Avago, well known as a data-center provider, to boost its relevance in telecom circles. For CyOptics, it's the end of a long road that's included a whole lot of fundraising. A splinter of Bell Labs/Lucent, CyOptics raised at least $161 million, based on a cursory check of Light Reading headlines. The original investors were almost certainly washed out at some point, as CyOptics continued raising money as late as 2011, when it picked up $50 million. If nothing else, the deal means Ed Coringrato, who's been CyOptics's CEO since 2005 and oversaw at least two funding rounds, can give his VC-dialling fingers a rest. For more