JDS Uniphase Corp. (JDSU) has put up $760 million to acquire closely held optical test and measurement firm Acterna Inc.

The deal is comprised of $450 million in cash and $310 million in JDS Uniphase common stock. With regulatory approvals, the deal is expected to close by the end of September.

The acquisition will give JDSU a company with combined annual revenues of over $1 billion, and expand its portfolio to include test and measurement gear for a range of IP-based data, voice, and video services.

While JDSU historically has placed plenty of test and measurement focus on equipment manufacturers, its purchase of Acterna will give it a line into service providers, as well, including Comcast Cable, BT, Verizon and SBC.

Following the deal's closure, John Peeler, Acterna's president & CEO, will head up JDSU's Communications T&M product group.

JDSU's test and measurement business, primarily with manufacturers, "has not been a major sales focus," but that will change under Peeler, said JDSU President & CEO Kevin Kennedy, during a call with reporters and analysts.

Kennedy did not downplay the integration challenge that lay ahead, but noted, "we believe this is the right acquisition at the right time."

The JDSU acquisition will end yet another chapter in the evolution of Acterna, which was created in May 2000 via the merger of Wavetek Wandel Goltermann and TTC.