SAN JOSE, Calif., May 18 -- JDS Uniphase announced Monday it has acquired E2O Communications Inc. for approximately $60 million in cash. As a result of the acquisition, JDS Uniphase said it expects to strengthen its position in the optical data communications market. Founded in 1998 and headquartered in Calabasas, Calif., E2O develops and manufactures optical transceivers to support fast Ethernet, Gigabit Ethernet, 10 Gigabit Ethernet, 1X-4X Fibre Channel, 10 Gigabit Fibre Channel, ESCON, ATM and SONET. "E2O has been an excellent supplier to us and we now look forward to continuing and expanding that relationship with JDS Uniphase," said Bob Finley, vice president of manufacturing for McDATA Corporation. "We have already met with members of the JDS Uniphase integration team, and have taken the first steps in planning for the acquisition." The data communications market has been one of the fastest growing areas in optical communications, JDS Uniphase said in a statement. "Ethernet and Fibre Channel unit sales are expected to increase from about 10 million units in 2003 to about 14 million units in 2005,according to the 2003 forecast of optical communication industry research firm RHK Inc." H.C. Lee, PhD, president and CEO of E2O, will join JDS Uniphase as vice president of the combined datacom business unit. JDS Uniphase said, "E2O also brings strong research and development capabilities and leading technology, such as its long wavelength vertical cavity surface emitting laser (VCSEL), which offers a breakthrough in enabling 10 Gb/s enterprise and other applications." For more information, visit: www.jdsu.com