TriQuint Semiconductor Inc. said it has signed an agreement to sell its optoelectronics operations in Breinigsville, Pa., and Matamoros, Mexico, to CyOptics Inc., an optical components maker.

Financial terms weren't disclosed. Ali Abouzari, vice president of sales and marketing at CyOptics, declined to disclose the price CyOptics paid for the business.

The asset sale includes the products, manufacturing equipment, inventory, related intellectual property rights and other assets that constitute the TriQuint operation that makes indium phosphide optical chips and components.

Separately, TriQuint signed into an agreement last month to sell its approximately 850,000-square-feet optoelectronics facility and surrounding property in Breinigsville, Pa., to Anthem Partners LLC, an affiliate of the MRA Group. The MRA Group is a developer and manager of health-care and education-related real estate entities.

MRA plans to transform the facility into a technology centers, featuring a combination of technology research and development, biomedical engineering, high-tech manufacturing, and a related education advancement and conference center. CyOptics will lease approximately 90,000 square feet of space in this facility for its operations.

TriQuint's total consideration from the sale of the building and the business will be approximately $32 million - of which $22 million is in cash - and will result in a one-time gain of between $7 million and $8 million.

TriQuint will also receive a minority ownership share in CyOptics. The company said it will focus on growing its businesses in the wireless handset, base station, defense and wireless broadband access markets. TriQuint will continue to support current optical customers and gallium arsenide products not associated with the operations in Pennsylvania and Mexico.

CyOptics plans to employ the vast majority of TriQuint's approximately 100 employees in Pennsylvania and approximately 150 employees in Mexico.

Completion of both transactions is subject to customary closing conditions. TriQuint anticipates the sale to CyOptics will close by the end of April 2005 and the sale to Anthem by the end of May 2005.

In a statement, Ralph Quinsey, president and chief executive of TriQuint, said, "The optoelectronics market will only support a few right sized and nimble players...Merging TriQuint's optoelectronics business with CyOptics provides a more optimal operating environment and return on investment horizon for the business."

Ed J. Coringrato, president and chief executive of CyOptics, said the acquisition makes CyOptics a top-five supplier of indium phosphide optical chips and components.

TriQuint Semiconductor is a chip maker that focuses on radio frequency and optical communications applications. Markets include wireless phones, base stations, optical networks, broadband and microwave, and aerospace and defense. Its products are based on process technologies including gallium arsenide, indium phosphide, surface acoustic wave, and bulk acoustic wave.

CyOptics designs and manufactures optical engines for broadband communications. The company's focus is to provide modules that are five times smaller than industry standard modules, and require less electrical operating power. The company says its high-volume production is enabled by using a flexible, "nanotech-capable" robotic manufacturing process that delivers high uniformity and low cost.

The company currently has 60 employees in its wafer chip fabrication facility in Yokneam Illit, Israel, and its corporate headquarters in Lehigh Valley, Pa.

To date, CyOptics has raised $87 million in total funding, including a Series E round of $10 million led by Jerusalem Venture Partners and closed in September 2004. Other investors in the start-up include Soros Private Equity Partners, Sprout Group, Eurofund Partners, Ventech and Innovacom SA.