Nokia announced its acquisition of Infinera Corp for $2.3 billion. The Finnish telecom giant aims to bolster its optical network business, with a particular focus on the North American market. Infinera’s shares saw a significant rise following the announcement, appreciating nearly 22%. The deal value represents a premium of 26.4% over Infinera’s closing price before the announcement. Nokia will pay at least 70% of the acquisition price in cash, with the remainder potentially in Nokia’s American Depositary Shares. This strategic acquisition is expected to enhance Nokia’s earnings shortly after the deal’s completion and significantly boost profitability by 2027. Infinera, headquartered in San Jose, California, specializes in optical semiconductors and networking equipment for both fixed line and mobile telecommunications.
Telecommunications, Optical Networking, Technology,North America, Finland
https://www.zawya.com/en/markets/equities/nokia-to-acquire-infinera-in-23bln-deal-to-scale-up-optical-network-ogzi00k3