E-Tek Dynamics Inc. of San Jose, Calif., plans to acquire ElectroPhotonics Corp. in Toronto in a stock swap valued at $40 million. The latter company's expertise in fiber Bragg grating solutions will help E-Tek Dynamics to develop systems for dispersion compensation. ElectroPhotonics develops components for optical networking, including dense wavelength division multiplexing components, dispersion compensation modules and network performance monitoring subsystems.