Fibre optics group Bookham Technology has received a huge boost in a £19.7 million deal which will see it acquire the optical components arm of troubled telecom equipment group Marconi.

Marconi is off-loading the division to Bookham Technology, which employs about 100 people at its manufacturing site in Groundwell, in return for a 9.9 per cent stake in the fibre optics group.

Marconi's recently appointed chief executive Mike Parton said the agreement was part of the group's strategy of disposing of non-core businesses and that there was "very real value" in taking a stake in Bookham.

The division, based in Caswell, Northamptonshire, with another operation in Chelmsford in Essex, employs around 500 people.

Bookham president and chief executive Giorgio Anania said: "Integrating Marconi's optical components arm creates a powerful new force in the optical components market-place worldwide.

"Bookham gets access to a significant portfolio of intellectual capital, highly-skilled people and a range of other assets."

Under the deal, Marconi has agreed to buy a minimum of £30 million worth of components from Bookham over the next 18 months.

Mr Anania said this meant the purchase gave the group immediate revenues as well as longer-term growth potential.

Marconi was recently booted out of the FTSE 100 Index of blue chip shares following the collapse of its share price.

The group, which has seen a raft of redundancies over recent months as well as the departure of its chief executive and chairman, has been hit hard by the telecoms downturn.

Abingdon-based Bookham has also seen its share price slump, diving from highs of £53.02 last year to lows this year of just 79p. It too has slashed its workforce in light of the economic slowdown.