Optical technology developer Lumentum Holdings Inc. has reached an agreement to buy fellow optical component and subsystem developer Oclaro Inc. for $1.8 billion in cash and stock. "Joining forces with Oclaro strengthens our product portfolio, broadens our revenue mix and positions us strongly for the future needs of our customers,” said Alan Lowe, president and CEO of Lumentum. “Oclaro brings its leading indium phosphide laser and photonic integrated circuit and coherent component and module capabilities to Lumentum. The combined company will drive innovation faster and accelerate the development of products to enable our customers to win. We are delighted to welcome the talented Oclaro team to Lumentum and look forward to a swift completion of the transaction with a focus on supporting our customers and delivering shareholder value." The companies expect the deal to close in the second half of this year. Lumentum is a developer of optical communication technology, commercial lasers and diode lasers, among other products. Oclaro is a developer of optical components, modules and subsystems for optical transport, metro and enterprise networks, and data centers.