Finnish telecom equipment maker Nokia has officially completed the acquisition of Infinera Corporation, integrating the San Jose, US-based optical networking company into its operations in a USD 2.3 billion deal. The announcement follows the European Union's (EU) unconditional approval on February 26 of Nokia's takeover of Infinera.
Also Read: Nokia Completes Sale of Alcatel Submarine Networks to French State
Strengthens Nokia's Optical Networking Business
Nokia stated on Friday that the acquisition will further enhance its ability to serve network operators—including service providers, web scalers, and enterprises—by unlocking new opportunities and meeting the network and power demands of the AI era.
Both Nokia and Infinera supply optical transport equipment used to transmit data through optical fiber cables. According to the companies, the transaction will enable the merged entity to achieve the necessary scale in its optical networking business, accelerating its product roadmap and strengthening its competitiveness.
EU’s Unconditional Approval
The European Commission determined that Nokia and Infinera’s combined market shares in the global and European Economic Area (EEA) markets for optical transport equipment, as well as in narrower market segments, are moderate. Additionally, the commission found that several competitors operate in these markets, concluding that the acquisition would not raise competition concerns. As a result, the transaction was cleared unconditionally.
Also Read: Infinera Introduces 1.6 Tbps ICE-D Intra-Data Center Optics Solution
"I am delighted we have been able to quickly and successfully complete the acquisition of Infinera. This transaction will significantly improve our scale and profitability in optical networks, and allows us to speed up the pace of innovation to meet the requirements of the AI era," said the President and CEO of Nokia.
He added that the acquisition of Infinera will accelerate Nokia's growth in data centers and strengthen its presence in North America and among webscale customers.
"The speed with which the transaction was approved is very positive for Nokia, as is the strong support the deal has received from customers," commented the President of Network Infrastructure at Nokia.
Leadership Changes and Growth Plans
The Infinera team will join Nokia's Optical Networks business – headed by its Vice President and General Manager. Meanwhile, Infinera CEO will join Nokia's Network Infrastructure business group as NI Chief Strategic Growth Officer.
In the new role, he will help to set and oversee the implementation of the business group's growth plans, including specific customer segment strategies, product and market mix, and go-to-market approach across the business group, Nokia said.
Also Read: Infinera and LightRiver Successfully Demonstrate Multi-Vendor Interoperability Technology
Synergy Goals
With more than 1,000 customers globally, the combined company's solutions power some of the biggest operators worldwide, along with leading organizations in verticals including enterprise, utilities, government and research and education.
On June 28, 2024, Nokia and Infinera announced that they had signed a definitive agreement under which Nokia would acquire Infinera for USD 6.65 per share.
Nokia expects the transaction to be accretive to its comparable operating profit and earnings per share (EPS) in 2025, and the company continues to target over 200 million euros of net comparable operating profit synergies from the deal by 2027, with the synergies ramping gradually over three years.
