International Finance

Nokia to acquire open optical network provider Infinera for USD 2.3 billion

Nokia's acquisition of Infinera is a big step toward improving its optical networking capabilities and broadening its global reach

Nokia recently revealed that it would be acquiring Infinera, a global provider of cutting-edge optical semiconductors and creative solutions for open optical networking.

The acquisition seeks to establish a highly integrated, globally scalable optical company, through vertical integration and enhanced internal technological capabilities.

Infinera is valued at USD 6.65 per share in this transaction, for an enterprise value of USD 2.33 billion.

Both Nokia’s and Infinera’s boards of directors have unanimously approved the acquisition. The deal is expected to close in the first half of 2025, subject to customary closing conditions and regulatory approvals.

In particular, in North America, the acquisition enhances Nokia’s optical standing. It expedites the diversification of Nokia’s customer base and increases the company’s market share in the web-scale space.

Enhancing Nokia’s optical scale in the region and bolstering its strong positions in APAC (Asia Pacific Region), EMEA (Europe, Middle East, and Africa), and Latin America, Infinera has established a robust presence in the North American optical market, accounting for approximately 60% of its sales.

Nokia anticipates that the transaction will be accretive to its comparable operating profit and EPS in the coming years, with over 10% comparable EPS accretion predicted by 2027.

In order to better serve clients, the combined company wants to develop new optical products and solutions more quickly. Nokia feels that this is in line with its strategy, given that webscale customers make up the fastest-growing market segment.

Overall, Nokia’s acquisition of Infinera is a big step toward improving its optical networking capabilities and broadening its global reach.

Nokia acquired Fenix Group in 2023 by incorporating the creative broadband tactical communications products from Fenix Group into its current solutions portfolio.

Furthermore, Nokia recently reached a deal with the French government to sell ASN, its market-leading submarine network business.

Meanwhile, the Nokia 220 4G and Nokia 235 4G phones were released in India by HMD Global, the company that is authorised to produce phones under the Nokia brand.

This expands the company’s 4G feature phone line-up. Unisoc chipset and 2.8-inch IPS display are features of the phones. A detachable 1450 mAh battery is included with the 4G phones.

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