Nokia has announced plans to acquire Infinera Corp in a transaction valued at $2.3 billion, aiming to enhance its optical network capabilities, particularly in North America, the companies revealed on Thursday. Following the announcement, Infinera’s shares jumped nearly 22%. The acquisition price of $6.65 per share marks a 26.4% premium over Infinera’s closing price of $5.26 on Thursday. Nokia will provide at least 70% of the payment in cash, with Infinera shareholders having the option to receive up to 30% of the total consideration in Nokia’s American Depositary Shares, according to a joint statement. This deal is projected to boost Helsinki-based Nokia’s comparable earnings per share within the first year post-closure and increase profits by over 10% by 2027. San Jose, California-based Infinera specializes in manufacturing optical semiconductors and networking equipment for both fixed line and mobile telecommunications networks
