Optical Network Firm Sycamore to Buy Sirocco

Optical network equipment company Sycamore Networks Inc., moving to expand its product line, said it will buy start-up Sirocco Systems Inc. for about $2.9 billion in stock. Privately held Sirocco makes devices that connect existing telecommunications switches and lines to high-speed optical switches such as those that Sycamore makes. In April, the company announced its first products, which are expected to be available in the fourth quarter. Sirocco, based in Wallingford, Conn., gives Sycamore the ability to sell smaller switches for small cities or large buildings with several tenants. The Sirocco equipment also opens up new areas for services by using a range of standards and speeds, President and Chief Executive Dan Smith said. Shares in Chelmsford, Mass.-based Sycamore fell 94 cents to close at $102 on Nasdaq.