PMC-Sierra (PMCS) will acquire closely held Passave, a maker of components for fiber optic networks, for $300 million.
The Santa Clara, Calif., optical networking chipmaker says it expects no near-term impact to earnings. The company also said it expects first quarter sales to be about $83.5 million, in line with analysts' expectations.
As a supplier to broadband networking equipment makers, PMC has attracted some of the recent investor interest in fiber optics. With Passave, PMC says it adds to its fiber-to-the-home product line.
"Our acquisition of Passave brings PMC-Sierra an experienced and highly innovative team with clear market share leadership in Passave Optical Networking solutions," says CEO Bob Bailey.
Shares of PMC rose a nickel to $12.31 in after hours trading Tuesday.