The transaction values Infinera at $6.65 per share or an enterprise value of US$ 2.3 billion.
The acquisition has been unanimously approved by the boards of directors of both Nokia and Infinera. The deal is targeted to close during the first half of 2025, subject to regulatory approvals and customary closing conditions.
The acquisition strengthens Nokia's optical position, particularly in North America. It accelerates Nokia's customer diversification strategy, expanding its presence in the webscale market. Infinera has built a solid presence in the North America optical market, representing ~60% of its sales, which will improve Nokia’s optical scale in the region and complement Nokia’s strong positions in APAC, EMEA and Latin America.
Nokia expects the transaction to be accretive to its comparable operating profit and EPS in year, with over 10% comparable EPS accretion projected by 2027.
The combined business aims to accelerate the development of new optical products and solutions to benefit customers. Nokia believes this aligns well with its strategy, as webscale customers represent the fastest-growing segment of the market.
Overall, Nokia's acquisition of Infinera is a significant move to enhance its optical networking capabilities and expand its global reach.
In 2023, Nokia acquired Fenix Group by adding Fenix Group's innovative broadband tactical communications products to its existing solutions portfolio. Additionally, Nokia recently entered into an agreement with the French State to sell its leading submarine networks business, ASN.
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