GoPro has agreed to a definitive merger with private photonics company Starman Optical, aiming to expand into AI data centers and defense markets.

The transaction calls for a $285 million cash payment, or $1.14 per share, and GoPro’s stock will remain listed on the Nasdaq.

GoPro’s leadership describes the deal as a path to growth across consumer, commercial and defense markets as an American imaging and optical solutions company focused on cameras, optics and AI infrastructure.

Shares rose about 38% following the announcement.

The company also said that about $92 million of debt will be repaid when the deal closes, and it will continue supporting its consumer products, subscription and cloud platform while investing in a broader product roadmap.