JDS Uniphase to Buy Epitaxx

JDS Uniphase Corp. has agreed to buy Epitaxx Inc. for $400 million in stock, as the No. 1 maker of fiber-optic equipment parts aims to supply more of the components used in phone and cable-TV networks. Epitaxx, based in Trenton, N.J., makes products that detect and receive laser pulses that carry information on glass fibers. JDS Uniphase supplies the lasers to equipment makers such as Lucent Technologies Inc. and Nortel Networks Corp. The purchase would give JDS Uniphase a bigger share of the market for optical components, where sales are rising by more than 40% a year. It would be the first deal since Uniphase Corp. bought JDS Fitel Inc. for $7 billion in July. Epitaxx is majority-owned by a unit of Nippon Sheet Glass Co. The Japanese glassmaker planned as recently as last year to spin off the company in an initial public offering. Shares of San Jose-based JDS Uniphase soared $9.75 to close at $125 on Nasdaq.