Lumentum (NASDAQ:LITE) is acquiring Cloud Light Technology in a deal valued at about $750M.

The acquisition is expected to accelerate Lumentum’s push into the fast growing segments of optical modules used in cloud computing data center infrastructure, according to the company.

“With Cloud Light, we are making a strategic investment to significantly expand our opportunities in the cloud data center and networking infrastructure space,” said Lumentum President and CEO Alan Lowe. “Cloud Light provides us with the highest speed transceiver solutions at scale and complements our advanced component capabilities.”

Lumentum added that nearly all of Cloud Light’s more than $200M revenue in the last 12 months was from 400G or higher speed transceiver sales.

At closing, the transaction consideration will be paid in cash and the assumption and substitution of outstanding unvested Cloud Light options.

The company intends to finance the deal through cash. The transaction is immediately accretive to Lumentum’s earnings.

The transaction, which has been approved by the boards of both companies and by Cloud Light’s shareholders, is expected to close by the end of 2023.