Nokia to acquire Infinera: Nokia announced its intention to acquire Infinera, a leading provider of open optical networking solutions and advanced optical semiconductors, for an enterprise value of $2.3 billion. The transaction is expected to close by the end of the second quarter of 2024, subject to customary closing conditions and regulatory approvals.
Nokia to Acquire Infinera Expected Synergies:
Nokia announced its intention to acquire Infinera in a deal valued at $2.3 billion. The transaction represents a premium of 28% to Infinera’s share price at the close of June 26, 2024.
The Price per share would be $6.65 for an enterprise value of $2.3 billion. Price per share is a premium of 26.4% to Infinera’s closing price of $5.26 on Thursday. The consideration includes at least 70% in cash, Up to 30% in Nokia American Depositary Shares (ADS)
Infinera shareholder options: The Price $6.65 cash per share, 1.7896 Nokia shares per share with combination of $4.66 cash and 0.5355 Nokia shares per share
Nokia targets to achieve €200 million of net comparable operating profit synergies by 2027.
The acquisition is expected to accelerate Nokia’s path to a double-digit operating margin in its Optical Networks business.
Overall on Nokia to acquire Infinera, the acquisition has been approved by the boards of both companies. It is expected to close during the first half of 2025, subject to regulatory and shareholder approvals.