SUNNYVALE, Calif. (AP) — Finisar will spend $23.7 million in cash to acquire RED-C Optical Networks Inc.

The fiber optic communications company is seeking new amplification technology to its lineup of telecom products. RED-C is incorporated in Delaware, but mainly operates in Israel.

RED-C was founded in 2000 and has over 140 employees, all of whom are located in Israel. Once the deal closes, the company will operate as a subsidiary of Finisar from its current location

Finisar, based in Sunnyvale, Calif., will initially pay about $23.7 million in cash for all outstanding equity. It will also pay shareholders and certain employees up to an additional $20 million in cash or Finisar common stock, if certain financial targets are met during 2013. Those employees must remain with Finisar for the payouts to occur.

The acquisition, which is expected to close by the end of July, should boost adjusted earnings per share for the fiscal year ending April 30, 2013, the company said Tuesday.

Finisar shares rose 33 cents, or 2.3 percent, to $14.69 in morning trading.