Solectron to Take Over Cisco Optical Plant

Solectron Corp., the No. 1 contract electronics manufacturer, said that it had reached a deal to take over an optical equipment plant from Internet networking giant Cisco Systems Inc. Financial terms were not disclosed.

Milpitas, Calif.-based Solectron said that it would take over production, testing and repair for Cisco’s dense wave division multiplexing equipment, which is used to increase the bandwidth of optical fiber networks.

Solectron fell $1.49 to $22.92 on the New York Stock Exchange, while San Jose-based Cisco fell $1.59 to $20.46 on Nasdaq.