It will pay 2.25m pounds ($3.7m) in shares up front and a further 3m pounds ($5.2m) if the company hits sales targets over the next two years.
Santa Rosa, California-based Cierra has received $50.7m in two rounds of venture funding but the collapse of the markets that it serves left its backers open for a deal that would lead others to finance its future developments.
Bookham and Cierra formed a two-part technology and commercial association last year to exploit jointly the strengths of their complementary optical-integration technologies to develop products for their customers.
Source: Computerwire
