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Avago Tech to buy CyOptics for about $400 million

NEW YORK (AP) -- Avago Technologies Ltd., which makes chips for iPhones and other mobile devices, said Thursday that it reached a deal to buy CyOptics Inc. for about $400 million in cash.

CyOptics, based in Breinigsville, Pa., produces indium phosphide optical chip and component technologies for the data communications and telecommunications markets. Avago said the acquisition will boost its lineup of fiber optics products.

Avago said that the privately held company's revenue has more than tripled over the past three years. Its 2012 sales totaled about $210 million. Avago posted revenue of $576 million in its fiscal first quarter ended Feb. 3.

Avago said it plans to fund the deal with cash on hand. It's expected to close during Avago's fiscal third quarter of 2013.

Shares of Singapore-based Avago rose 20 cents to $35.58 in morning trading.