Nokia has announced on its official website that it will acquire the optical network equipment manufacturer Infinera for $6.65 per share, amounting to a total of $2.3 billion. This acquisition aims to expand Nokia's optical network market size and accelerate its product technology roadmap.

Nokia and Alcatel-Lucent see significant opportunities in the merger to enhance scale and profitability. The combined entity will be able to expedite the development of new products and solutions, benefiting customers. The transaction aligns with Nokia's strategic vision, as it is expected to strengthen the company's leading position in optical communication technology.

Nokia believes the deal holds compelling financial and strategic value. The merger with Infinera is anticipated to hasten Nokia's optical network business towards achieving a double-digit operating profit margin. Nokia's goal is to realize €200 million in comparable net operating profit synergies by 2027. Additionally, this transaction, along with the recently announced sale of its submarine network business, will reshape the Network Infrastructure business group, establishing a foundation based on fixed networks, IP networks, and optical networks.

Infinera reported revenues of $1.614 billion in 2023, a 2.60% increase from the previous year, and a net loss of $25.2 million, which is a 66.84% reduction in losses compared to 2022.

Pekka Lundmark, President and CEO of Nokia, stated, "In 2021, we increased our investment in optical networks to enhance competitiveness. This decision has proven effective, improving customer recognition and achieving strong sales growth and profitability. Given the high degree of complementarity between both parties in customers, geographies, and technology, the merged business has a strong strategic fit."

Federico Guillén, President of Nokia's Network Infrastructure business group, commented, "This acquisition will further strengthen our optical network pillar, expanding growth opportunities across all target customer segments. I am thrilled to bring together these two talented and dedicated teams, who have long respected each other as competitors, and now find the logic of merging irresistible."

David Heard, CEO of Infinera, said, "At a time when optical network technology is more important than ever, we will jointly possess greater scale and resources to lead the pace of innovation and meet the rapidly changing needs of our customers-whether in telecom networks, inter-data center applications, or current intra-data center applications."