Nokia acquires Infinera Corp for $2.3 billion

Nokia, a leading technology company, has recently announced its acquisition of Infinera Corp for a whopping $2.3 billion. This strategic move is aimed at strengthening Nokia's position in the optical network sector, with a particular focus on expanding its footprint in North America.

The acquisition deal, valued at $6.65 per share, represents a significant 26.4% premium over Infinera's closing stock price of $5.26 on the day of the announcement. Nokia plans to pay at least 70% of the total amount in cash, offering Infinera shareholders the option to receive up to 30% in Nokia's American Depositary Shares.

Following the acquisition, Nokia anticipates a positive impact on its earnings per share within the first year after the deal's closure. By 2027, the acquisition is expected to contribute more than 10% to Nokia's profits. Infinera, headquartered in San Jose, California, specializes in the production of optical semiconductors and networking equipment for both fixed-line and mobile telecommunications networks.

The acquisition of Infinera Corp by Nokia marks a significant milestone in the tech industry, signaling Nokia's commitment to expanding its presence in the optical network sector. This strategic move is expected to bring about positive outcomes for both companies and pave the way for enhanced technological innovations in the telecommunications industry.