Optical networking supplier Avanex has agreed to buy the optical component businesses of Alcatel and Corning in a share deal valued at about $63.5m.
Combining its optical business offerings with those of Alcatel and Corning will bolster Avanex's position in the optical networks market. The deal should close by the end of September.
As part of the deal, Avanex will take over all outstanding shares of Alcatel's optical components division, which makes products including lasers, photo detectors, optical amplifiers and transponders. The takeover includes businesses in the UK and France, Alcatel's home country.
Avanex and Alcatel will also enter into a three-year supply agreement, under which Avanex will supply products for Alcatel's optical networking products. Assets to be bought from Corning include optical amplifier, dispersion compensation and micro optics operations in New York and Italy.
Together, Alcatel and Corning will sign over about 1,400 patents to Avanex and license thousands more as part of the deal.