JDS Uniphase spends millions on IBM optical business

NEWS Optical networking specialist JDS Uniphase is splashing out $425m to buy IBM's optical transceiver business to boost its data communications offering. Optical transceivers have both an optical transmitter and an optical receiver, allowing two-way communications between two end points. The company will pay $100m cash and $240m in stock, with additional payments of up to $85m in cash and stock in early 2003. JDS Uniphase said the deal would enable it to offer products for storage area networks and serve customers like Brocade, Compaq and HP. The company warned in October that revenues would slide by up to 15 per cent in the current financial quarter.