Optical technology company JDS Uniphase (JDSU) plans to acquire Agilent’s LTE testing business for $165 million in cash. The deal is expected to close by June.

Agilent’s LTE network testing unit had $162 million in sales during its 2009 fiscal year thanks to demand for its service assurance monitoring systems, drive test and protocol test instruments.

The acquisition will significantly expand JDSU’s position in the network testing business, particularly in the emerging market for LTE/4G solutions needed by operators upgrading to next-generation technology. Network testing technologies are used throughout the LTE development, deployment and operational life cycle.

The Agilent unit being acquired by JDSU has about 700 employees with business operations located in Colorado, the U.K., Singapore and Beijing. Agilent’s other business units supply the science, chemical analysis and electronics industries.

JDSU provides test and measurement solutions to the telecom industry. It also provides optical technology for several industries, including medical/environmental instrumentation, semiconductor processing, display, brand authentication, aerospace and defense and 3D glasses.