Nokia Acquires Infinera, Expanding Optical Networks Powerhouse
Deal News | Feb 28, 2025 | EIN
Nokia has finalized its acquisition of Infinera Corporation, a strategic move that combines the strengths of two leaders in the optical networks market. This merger aims to consolidate Nokia's presence in the webscale segment and accelerate its innovation capabilities, supporting the rising demands of AI and cloud technologies in data centers. The acquisition, supported by cutting-edge research from Nokia Bell Labs, will expedite product development and enhance Nokia’s optical networking solutions. This transaction is expected to bring substantial synergies, boosting Nokia's operating profits by over EUR 200 million by 2027 and delivering over 10% EPS accretion by 2027. As a result, Nokia will strengthen its market position across various sectors, further solidifying its role as a key player in the global technology landscape.
Sectors
- Telecommunications
- Technology
Geography
- Finland – Nokia is headquartered in Espoo, Finland, hence Finland is a significant geography in this acquisition.
- United States – Infinera Corporation is based in San Jose, United States, making it a relevant geography in the transaction.
Industry
- Telecommunications – The acquisition pertains to the telecommunications industry as it involves two companies known for advancements in optical networking solutions that facilitate data transmission and networking communications.
- Technology – The merger involves technological innovation and development, particularly with aspects related to AI, cloud, and data center applications.
Financials
- US$6.65 per share – The acquisition price per Infinera share offered by Nokia.
- EUR 200 million – Targeted net comparable operating profit synergies expected by 2027.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Nokia | Acquirer/Buyer | Company | A Finnish multinational corporation specializing in telecommunications, information technology, and consumer electronics. |
| Infinera Corporation | Target Company | Company | A US-based company providing a range of optical networking solutions. |
| Pekka Lundmark | President and CEO of Nokia | Person | He commented on the strategic benefits and expected outcomes of the acquisition. |
| Federico Guillén | President of Network Infrastructure at Nokia | Person | Discussed the innovations and growth resulting from the acquisition. |
| David Heard | CEO of Infinera | Person | Will join Nokia as NI Chief Strategic Growth Officer post-acquisition. |