Finisar Buying New Focus Passive Product Line

SUNNYVALE , Calif., April 25 -- Finisar Corp. has an agreement to purchase New Focus Inc.'s passive optical component product line from for $12.8 million.

New Focus will receive an initial payment of about $6.75 million, payable in the form of Finisar common stock that will be freely tradable. New Focus will also receive royalty payments that are subject to guaranteed minimum annual payments totaling $6 million during the first three years of the agreement. The royalty payments are based on a percentage of the sales of all products that use the transferred technology.