Lake Communications, a Dublin-based supplier of telecoms and software products, has agreed to acquire the international businesses of US firm, Home Wireless Networking, for #10 million (£7.88 million).

Home Wireless Networking, which is based in Atlanta, develops wireless networking products which connect devices in small businesses and home offices.

Under the terms of the deal, Lake Communications will take possession of Home Wireless Networking's international product development group based in Cambridge in England.

Lake was established three years ago and employs 40 people, 30 of whom are in R&D. The acquisition boosts its R&D staff to more than 100 people.

Home Wireless Networking's international operations will have sales of about #15 million this year based on contracts with major customers in Europe and Australia.

Mr Anthony Bermingham, chief executive of Lake, said the acquisition was part of a "strategic refocusing".

He said the UK acquisition would add an important wireless networking product to Lake's existing voice and data portfolio.

Mr Bermingham said Lake Communications was currently looking at other potential acquisition opportunities in Europe and the US.