Nokia is set to acquire Infinera, a leading Silicon Valley optical-transmission equipment manufacturer, in a deal valued at $2.3 billion. The Finnish telecommunications giant aims to strengthen its presence in the North American optical markets with this significant acquisition.
Nokia to buy Infinera for $2.3B : Deal Overview
Skadden Arps Slate Meagher & Flom LLP is representing Nokia in this strategic move. Meanwhile, Wilson Sonsini Goodrich & Rosati PC is advocating for Infinera. The companies revealed the agreement late Thursday, valuing Infinera at $6.65 per share, a 28% premium over its Wednesday closing price. Following the announcement, Infinera’s stock surged about 18%, reaching $6.20 per share on Friday morning.
Infinera’s Market Position
Based in San Jose, California, Infinera supplies open optical networking solutions and advanced optical semiconductors to carriers, cloud operators, governments, and other enterprises globally.
“We believe now is the right time to take a compelling inorganic step to further expand Nokia’s scale in optical networks,” stated Pekka Lundmark, Nokia’s president and CEO. He emphasized the strategic fit of the combined businesses, noting their complementary customer, geographic, and technology profiles.
Board Approvals and Future Plans
The boards of both Nokia and Infinera have approved the acquisition, with the transaction expected to close in the first half of 2025. This combination will expand Nokia’s optical networks business by 75%, according to the companies.
