JDS Uniphase Buying IBM Optical Transceiver Unit

SAN JOSE, Calif., Dec. 20 -- JDS Uniphase Corp. has agreed to buy IBM's optical transceiver business for $340 million in cash and stock, and based on the unit's profits, may pay another $85 million in 2003. IBM spokesman Michael Loughran said the approximately 100 employees who work for the Rochester, Minn., division will be offered jobs by JDS Uniphase.

He said the sale was part of normal portfolio management and consistent with microelectronic's focus on servers, pervasive computing technologies and networking. The purchase will expand JDS's business from long haul communications to short-reach carrier and enterprise communications applications, said JDS chief executive officer Jozef Straus.