Tellabs Inc., the biggest maker of gear that manages traffic on phone networks, agreed to buy closely held Ocular Networks Inc. for $355 million in cash and options to bolster its line of fiber-optic products.
Ocular's equipment organizes information and moves it through citywide optical networks more efficiently, reducing costs for phone companies.
The company, which was founded in 1999, will have sales of $50 million to $100 million next year, Tellabs said. T Ocular is based in Reston, Va.
The acquisition is part of Tellabs' push into so-called metropolitan optical equipment, which carries traffic through cities.
Shares of Tellabs, which is based in Naperville, Ill., fell 22 cents to close at $15.28 on Nasdaq.