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On June 27, Nokia (NYSE: NOK) and Infinera (NASDAQ: INFN), a global supplier of innovative open optical networking solutions and advanced optical semiconductors, announced a definitive agreement under which Nokia will acquire Infinera in a transaction valuing the company at $6.65 per share or an enterprise value of US$ 2.3 billion.

Shares of Infinera surged nearly 22%. The deal price of $6.65 per share represents a premium of 26.4% to Infinera's closing price of $5.26 on Thursday. Nokia will pay Infinera at least 70% in cash. Infinera's shareholders can elect to receive up to 30% of the aggregate consideration in the form of Nokia's American Depositary Shares, the companies said in a statement.

Nokia and Infinera see a significant opportunity in merging to improve scale and profitability, enabling the combined business to accelerate the development of new products and solutions to benefit customers. The transaction aligns strongly with Nokia’s strategy, as it is expected to strengthen the company’s technology leadership in optical and increase exposure to webscale customers, the fastest growing segment of the market.

Infinera’s CEO David Heard expressed excitement about the partnership, which will further leverage Infinera’s vertically integrated optical semiconductor technologies. He noted Nokia's scale and resources in driving innovation in optical networking, benefiting stakeholders with new growth prospects.

The deal is expected to add to Helsinki-based Nokia's comparable earnings per share in the first year after close and over 10% to profits by 2027.

Editor：Lulu

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