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Finisar Buys Again

For a company thats lost hundreds of millions of dollars for three straight years, Finisar Corp. (Nasdaq: FNSR)
isn’t shy about spending on acquisitions.

Finisar plunked down $16 million in stock today for the assets of Data Transit Corp., a private company that gives Finisar SAS and SATA testing and monitoring tools. Finisar has equipment to test most Fibre Channel SAN equipment but lacked SAS and SATA products.

It was Finisar’s third acquisition this year. The company bought Honeywell International Inc.’s (NYSE: HON) VCSEL business for about $75 million in cash in January, and closed a $263 million stock deal for Infineon Technologies AG’s (NYSE/Frankfurt: IFX) Fibre Optics business earlier this month. The Honeywell and Infineon deals were on the fiber optics side of its business, which provides the bulk of its revenue (see Finisar Acquires Infineon Fiber Optics Biz, Heavy Reading Hires Senior Analyst, and Finisar Buys Honeywell VCSEL Biz).

Finisar marketing VP Brian Staff says around 29 of Data Transit’s employees -- mostly engineers -- will join Finisar's Network Tools Division at the vendor's Sunnyvale, Calif., headquarters. Data Transit’s headquarters were in San Jose.

Data Transit’s top two executives -- CEO Dale Smith and VP of engineering Michael Steen -- will not join Finisar, although sales VP Jim Robertson will. Smith founded Data Transit in 1990 and helped it become one of the rare successful, private storage companies to spurn venture capital funding (see They Don't Need No Stinkin' VCs).

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