GoPro Inc (NASDAQ:GPRO) said on Tuesday it has agreed to merge with optical-photonics company Starman Optical in a $285 million recapitalization deal that will see Starman acquire a 90% stake in the combined business.
Under the terms of the deal, GoPro shareholders will receive about $1.14 per share in cash and retain roughly 10% of the combined company. Approximately $92 million of GoPro's debt will be repaid at closing.
The combined company will remain publicly listed and plans to expand beyond consumer cameras into AI data-center infrastructure, government, defense and aerospace applications, leveraging Starman's U.S.-made optical transceivers.
Shares of GoPro were up 47% on Tuesday morning.