JDS Uniphase


stepped into the data communications business by agreeing to acquire


(IBM) - Get Report

optical tranceiver unit for for $340 million in cash and stock.

According to the companies, Ottawa-based JDS could pay up to an additional $85 million in 2003, depending on the unit's performance.

IBM recently agreed to sell its global position system unit to

RF Micro


as it refocuses its microelectronics business on servers and networking.

The purchase moves JDS Uniphase into short-reach carrier and enterprise communications applications and makes it a top supplier to the data-communications markets, the company said.