Infinera Soars After $2.3 Billion Deal to Be Acquired by Nokia

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]