JDSU (JDSU) makes a bet on optical networking growth with a $115 million deal for Picolight.
The Milpitas, Calif.-based optical parts and network testing shop says it will acquire closely held Picolight, a maker of so-called pluggable laser transceivers used in data center and storage gear.
The all-stock transaction also includes up to $10 million in cash if Picolight, based in Louisville, Colo., hits unspecified 2007 revenue targets.
Analysts say the deal fires a shot across the bow of rivals, such as
, that have specialized in office and storage center transceiver market.
Early Tuesday, JDSU sank 66 cents to $16.04, and Finisar dropped 7 cents to $3.26.