MRV Communications Inc. said it plans to acquire Santa Clara-based Fiberxon Inc. for $131 million in cash and stock, in a move to expand its operations in China.

Fiberxon designs and manufactures optoelectronic interface modules for communication systems and networks. It has over 700 employees and 170 engineers in Santa Clara and Shenzen and Chengdu, China. MRV is North America’s sixth-largest maker of fiber optic equipment.

MRV will pay for the transaction with $80.4 million in newly issued stock and $17 in million cash, as well as making a future cash payment of $31.5 million.

Shares in MRV were up 13 cents to $3.96 in midday trading Friday.