Nokia (NOKIA.HE) will acquire Infinera Corp (INFN.O) in a $2.3 billion deal, aiming to bolster its optical network business in North America. Infinera’s shares surged nearly 22% following the announcement. The deal offers $6.65 per share, a 26.4% premium to Infinera’s closing price of $5.26.
Nokia will pay at least 70% of the acquisition in cash, with Infinera’s shareholders having the option to receive up to 30% in Nokia’s American Depositary Shares. The acquisition is expected to enhance Nokia’s comparable earnings per share in the first year and boost profits by over 10% by 2027.
San Jose-based Infinera manufactures optical semiconductors and networking equipment for fixed line and mobile telecommunications networks.