JDSU announced today that it has completed its acquisition of Finisar’s network tools business, which was announced last week.

The $40.6 million cash deal boosts JDSU’s presence as a provider of storage area network (SAN) protocol test tools, software and services.

"This acquisition provides JDSU with unique capabilities to address the SAN test market's best growth opportunities, such as fiber channel over Ethernet," said Dave Holly, president of JDSU's Communications Test and Measurement business segment. "We welcome the network tools team to JDSU and look forward to combining our respective strengths to deliver test innovation for the benefit of our customers."

JDSU expects the business to contribute revenue in the mid-to-high single-digit millions of dollars and neutral operating income in the first quarter of fiscal year 2010.

JDSU also announced that it would be issuing grants of compensatory stock option and restricted stock unit awards to employees hired by JDSU in connection with the acquisition.

The parties expect to close the transaction before the end of July.