(Telecompaper) Avago Technologies has agreed to acquire CyOptics, a maker of Indium Phosphide (InP) optical chips and components for the data communications and telecommunications markets, for USD 400 million in cash. Avago said the deal will strengthen its fibre-optics product portfolio for emerging 40G and 100G enterprise and data centre applications, helped by CyOptics' single-mode InP laser, receiver and photonics integration capability. Avago's optical transceiver products primarily leverage VCSEL-based technology today. In addition, the acquisition of CyOptics will facilitate Avago's establishment of a complementary optical components business, to serve growing segments of the access, metro and long-haul markets, as well as enterprise and data centre segments. CyOptics revenue has more than tripled over the past three years and reached USD 210 million in 2012. Avago intends to fund the transaction with cash on-hand. The takeover is expected to close during Avago's third fiscal quarter of 2013.