:Nokia will acquire Infinera Corp in a deal with an enterprise value of $2.3 billion, the companies said on Thursday, as the Finnish firm looks to expand its optical network business, especially in the North American market.
Shares of Infinera surged nearly 22 per cent.
The deal price of $6.65 per share represents a premium of 26.4 per cent to Infinera’s closing price of $5.26 on Thursday.
Nokia will pay Infinera at least 70 per cent in cash. Infinera’s shareholders can elect to receive up to 30 per cent of the aggregate consideration in the form of Nokia’s American Depositary Shares, the companies said in a statement.
The deal is expected to add to Helsinki-based Nokia’s comparable earnings per share in the first year after close and over 10 per cent to profits by 2027.
San Jose, California-based Infinera makes optical semiconductors and networking equipment for fixed line and mobile telecommunications networks.
