GoPro has agreed to be acquired by Starman Optical, a private U.S.-based maker of optical transceivers, in a $285 million cash deal aimed at addressing the action-camera maker’s financial challenges. The agreement, announced Tuesday, will see Starman Optical acquire a 90 percent ownership stake in GoPro, with existing shareholders retaining the remaining 10 percent.

The transaction is expected to provide GoPro with the necessary capital to repay its outstanding debt and improve its ability to manage rising costs, including increasing prices for memory chips and intensified competition from Chinese manufacturers. By partnering with Starman Optical, which specializes in components used in artificial intelligence data centers, GoPro aims to leverage its extensive portfolio of over 2,500 U.S. patents related to optics and imaging.

According to a joint statement from the companies, the deal is intended to broaden GoPro’s reach beyond consumer products, enabling the company to explore new opportunities in commercial, defense, and AI technology markets.

Following the announcement, GoPro’s shares surged more than 50 percent, closing at $1.33 per share, above the $1.14 offer price. The acquisition price represents a premium of approximately 29.5 percent over GoPro’s last closing share price prior to the deal’s disclosure.