Mellanox Technologies, supplier of end-to-end interconnect solutions for servers and storage systems, announced intent to acquire Kotura, developer of silicon-photonics optical interconnect technology for high-speed networking applications.

The two firms have signed a definitive agreement under which Mellanox will acquire Kotura for about $82m in cash. The terms of the transaction have been unanimously approved by both companies' boards of directors.

The transaction is currently projected to close in the second half of 2013, subject to the completion of certain closing conditions.

Mellanox expects silicon photonics to play a significant role in the enablement of high-speed networks. Kotura's technology will enable Mellanox's interconnect products to reach 100Gb/s and beyond bandwidth, and have longer reach optical connectivity at a lower cost, according to the buyer.

Mellanox expects to establish its first R&D center in the US at Kotura's current location. It intends to retain Kotura's existing product lines.

"Operating networks at 100 Gigabit per second rates and higher requires careful integration between all parts of the network,” Eyal Waldman, president, CEO and chairman of Mellanox, said. “We believe that silicon photonics is an important component in the development of 100 Gigabit InfiniBand and Ethernet solutions, and that owning and controlling the technology will allow us to develop the best, most reliable solution for our customers.”

The proposed acquisition is subject to customary closing conditions, including the receipt of applicable regulatory approvals and the approval of Kotura's shareholders.