Core Insights - Nokia is acquiring Infinera for $2.3 billion, valuing Infinera at $6.65 per share, with at least 70% of the payment in cash and the remainder in American depositary shares (ADSs) of Nokia [2][4] - The acquisition is expected to close in the first half of 2025, pending approval from Infinera shareholders and U.S. regulators [3][6] - Nokia anticipates achieving approximately €200 million ($214 million) in net comparable operating profit synergies by 2027 as a result of the integration [3][8] Company Strategy - Nokia's CEO, Pekka Lundmark, emphasized the strategic fit of the acquisition, highlighting the complementary customer, geographic, and technology profiles of both companies [3] - The deal aims to enhance Nokia's optical scale in North America, where Infinera generates about 60% of its sales, and to strengthen Nokia's positions in APAC, EMEA, and Latin America [10] Market Impact - Following the announcement of the acquisition, Infinera's shares surged approximately 18% to $6.20 in premarket trading [4][7] - The acquisition is expected to provide Nokia with greater exposure to the artificial intelligence (AI) data center market, which has seen increased demand recently [5][9]

Inside Information: Nokia to acquire Infinera to increase scale in Optical Networks and accelerate product roadmap Pekka Lundmark, President and CEO of Nokia, said: "In 2021 we increased our organic investment in Optical Networks with a view to improving our competitiveness. That decision has paid off and has delivered improved customer recognition, strong sales growth and increased profitability. We believe now is the right time to take a compelling inorganic step to further expand Nokia's scale in optical ...

Core Viewpoint - Nokia is set to acquire Infinera for $6.65 per share, valuing the transaction at an enterprise value of $2.3 billion, which represents a 28% premium to Infinera's share price as of June 26, 2024, and a 37% premium to the trailing 180-day volume weighted average price [1][5][10] Group 1: Strategic Rationale - The acquisition aims to enhance Nokia's scale and profitability in the Optical Networks sector, allowing for accelerated product development and improved customer offerings [1][3] - The combined entity is expected to increase Nokia's Optical Networks business scale by 75%, enabling a more competitive stance in the market [4][10] - The merger aligns with Nokia's strategy to strengthen its technology leadership in optical networks and expand its customer base, particularly among webscale customers [1][10] Group 2: Financial Implications - The transaction is projected to be accretive to Nokia's comparable EPS in the first year post-close, with an expected over 10% EPS accretion by 2027 [2][11] - Nokia anticipates achieving net comparable operating profit synergies of EUR 200 million by 2027, with one-third of these synergies coming from cost of sales and the remainder from operating expenses [4][11] - The deal is expected to deliver a return on invested capital (RoIC) comfortably above Nokia's weighted average cost of capital (WACC) [2][10] Group 3: Transaction Details - Infinera shareholders can choose to receive either cash, Nokia shares, or a combination of both, with at least 70% of the consideration being paid in cash [5][10] - The acquisition has received unanimous approval from the boards of both companies and is targeted to close in the first half of 2025, pending regulatory and shareholder approvals [6][10] - Nokia plans to increase its share buyback program to mitigate dilution from the acquisition [10][26]

Core Viewpoint - Infinera has demonstrated its xHaul multi-vendor capability, which supports 5G mobile broadband, amidst a challenging optical transport equipment market [1][5]. Company Developments - Infinera's xHaul networking architecture utilizes XR optics for point-to-multipoint optical transmission, reducing operational costs for 5G by minimizing the number of optical transceivers [11]. - The company has launched the ICE-X 800G Intelligent Coherent Pluggable and demonstrated its ICE-X 400G version in collaboration with Arista Networks and DZS [7]. - Infinera's GX Series ICE6 800G solution has been selected by American Tower to enhance connectivity in Brazil, expanding its market presence [14]. Market Performance - Infinera's shares have returned 11.8% year to date, contrasting with a 10% decline in the Zacks Computer - Network Industry [3]. - The optical transport equipment market has seen a 13% year-over-year decline in Q1 2024, with expectations of a further 2% decline for the year due to excess inventory issues [5]. Financial Outlook - The Zacks Consensus Estimate for Infinera's 2024 revenues is projected at $1.53 billion, reflecting a 5.5% year-over-year decline, while earnings are expected to drop by 91% year over year to 2 cents per share [16]. Industry Context - Communication service providers, particularly in North America and Asia Pacific, are becoming more cautious due to macroeconomic conditions, leading to postponed projects and careful capital expenditure management [9].

SAN JOSE, Calif., June 17, 2024 (GLOBE NEWSWIRE) -- Infinera (Nasdaq: INFN) announced today a successful multi-vendor demonstration of 5G mobile broadband xHaul using coherent open XR optics point-tomultipoint optical transmission. The multi-vendor interoperability testing, conducted with DZS and Calnex, represents a key step toward enabling mobile operators to greatly simplify and cost-reduce 5G and nextgeneration mobile transport network rollouts through the reduction of the number of optical transceivers ...

Core Insights - Deep Blue One is a new subsea cable system spanning 2,100 kilometers in the Caribbean and Latin America, enhancing connectivity for service providers and offshore gas and oil rigs [1] - The cable connects to Southern Caribbean Fiber's existing 3,000 km subsea cable, linking 16 islands from Trinidad and Tobago to Puerto Rico, with further connections to Miami and New York [1] Company Developments - Southern Caribbean Fiber, a Digicel company, partners with Infinera to deploy high-capacity cable performance solutions while reducing carbon footprint [2] - The deployment of Infinera's GX Series, featuring ICE6 800G and FlexILS solutions, enhances connectivity to the southern Caribbean region [3] - Infinera's technology minimizes costs per bit, maximizes spectral efficiency and fiber capacity, and reduces energy costs per megabit for the Deep Blue One cable [4] Market Impact - The Deep Blue One cable system is positioned as a critical infrastructure for the oil and gas industry, providing previously unavailable connectivity options [2] - The partnership between Digicel and Infinera aims to deliver innovative optical networking solutions, enhancing international connectivity in Latin America and the Caribbean [5]

Core Points - Infinera received a delinquency notification from Nasdaq due to noncompliance with Listing Rule 5250(c)(1) for failing to timely file its Quarterly Report on Form 10-Q for the quarter ended March 30, 2024 [1] - The company had previously received a notice for not timely filing its Annual Report on Form 10-K for the period ended December 30, 2023, but filed the Form 10-K on May 17, 2024 [2] - Nasdaq requires Infinera to submit a Plan Update by May 31, 2024, detailing how it intends to regain compliance by September 11, 2024 [3] - Infinera is working diligently to complete and file the Form 10-Q and to submit the Plan Update promptly [3] Company Overview - Infinera is a global supplier of innovative open optical networking solutions and advanced optical semiconductors [4] - The company's solutions are designed to enable carriers, cloud operators, governments, and enterprises to scale network bandwidth, accelerate service innovation, and automate network operations [4] - Infinera's offerings deliver industry-leading economics and performance across various applications, including long-haul, submarine, data center interconnect, and metro transport [4]

Core Points - Infinera received a delinquency notification from Nasdaq due to noncompliance with Listing Rule 5250(c)(1) for failing to timely file its Quarterly Report on Form 10-Q for the quarter ended March 30, 2024 [1] - The company had previously received a notice for not timely filing its Annual Report on Form 10-K for the period ended December 30, 2023, but filed the Form 10-K on May 17, 2024 [2] - Nasdaq requires Infinera to submit a Plan Update by May 31, 2024, detailing how it intends to regain compliance by September 11, 2024 [3] Company Information - Infinera is a global supplier of innovative open optical networking solutions and advanced optical semiconductors, serving carriers, cloud operators, governments, and enterprises [4]

About Infinera Date: Wednesday, May 22, 2024 Presentation: 8:40am EDT / 5:40am PDT Speaker: Nancy Erba, CFO Webcast: investors.infinera.com and click on "Events" Contacts: SAN JOSE, Calif., May 20, 2024 (GLOBE NEWSWIRE) -- Infinera (NASDAQ:INFN) announced today that it will participate in the following webcasted investor conference: J.P. Morgan 2024 Global Technology, Media and Communications Conference Infinera Media: Anna Vue Tel. +1 (916) 595-8157 avue@infinera.com Infinera Investors: Amitabh Passi, Head ...

Core Viewpoint - Infinera will participate in the J.P. Morgan 2024 Global Technology, Media and Communications Conference on May 22, 2024, with a presentation by CFO Nancy Erba [1] Group 1: Company Information - Infinera is a global supplier of innovative open optical networking solutions and advanced optical semiconductors [2] - The company's solutions enable carriers, cloud operators, governments, and enterprises to scale network bandwidth, accelerate service innovation, and automate network operations [2] - Infinera's offerings deliver industry-leading economics and performance in various applications, including long-haul, submarine, data center interconnect, and metro transport [2]