GoPro has announced a major strategic shift, agreeing to sell a majority of its business in a deal valued at $285 million. The transaction is designed to eliminate the company's significant debt and reposition its core focus toward the high-growth sectors of data centers and national defense.

On Tuesday, the action camera manufacturer revealed it has reached a definitive agreement with optical equipment maker Starman Optical for the sale of a controlling interest. Under the terms of the deal, Starman will pay $285 million in cash to acquire a 90% stake in GoPro, translating to $1.14 per share. Following this announcement, GoPro's share price surged by as much as 40% during Tuesday's trading session.

Both companies have stated that they expect the transaction to be finalized by the end of this year. Once the acquisition is complete, GoPro will maintain its status as a publicly traded entity, while also successfully clearing its $92 million in outstanding debt. This move provides a crucial financial lifeline for the company.

GoPro's action cameras, popular among skiers and surfers for capturing extreme sports, once propelled its stock to a high of $93 back in 2014. However, the company has faced a steady decline in sales over subsequent years. More recently, it has also grappled with rising costs for storage chips, which have further pressured its share price and financial performance. In June of this year, GoPro's financial reports included a warning that raised "substantial doubt" about its ability to continue as a going concern.

In a press release, GoPro's founder and CEO, Nicholas Woodman, stated that this acquisition will enable the company to move into "national security areas related to cameras, optics, and AI infrastructure." The newly merged enterprise plans to leverage its proprietary optics and imaging technology across the defense, data center, aerospace, and robotics markets, signaling a definitive move away from its consumer-centric roots and into a more technology-driven future.