Infinera Becomes Part of Nokia as Acquisition Deal Closes

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.

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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.