Shares of Teradyne plunged after the company said it inked a deal to buy photonic-integrated-circuit testing company Quantifi Photonics. The stock was down about 19% to $85.54 in mid-morning trading. Shares are now down over 30% since the start of the year.

Teradyne (TER) announced it has entered into a definitive agreement to acquire privately held Quantifi Photonics, a company in photonic IC

Wafer-level testing Teradyne says that the deal will enable it to deliver scalable PIC test solutions at a time when PIC production is set to boom - largely as a result of hefty recent investment in high-performance computing and in support of artificial intelligence (AI) cloud infrastructure based around high-speed optical links.

Teradyne said it agreed to acquire Quantifi Photonics, a privately-held photonic IC testing company. Teradyne said Monday the acquisition will enable it to deliver scalable photonic integrated circuit test solutions, which leverage wafer-based manufacturing, multi-die integration, and advanced packaging with high-speed I/O interfaces.