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Helsinki-based Nokia Corp. (NOK) entered a merger agreement on June 28, 2024, to acquire U.S. optical networking gear maker Infinera Corp. (INFN) for $2.3 billion, as the Finnish firm looks to expand its optical network business, especially in the North American market.
Under the terms of the agreement, Nokia is acquiring Infinera for $6.65 per share, representing a 26.43% premium on Infinera’s last close.
Nokia will pay at least 70% of the consideration in cash. Infinera shareholders can choose to receive up to 30% of the total payment in Nokia ADSs.
Infinera shareholders can choose either $6.65 in cash, 1.7896 Nokia shares, or a combination of $4.66 in cash and 0.5355 Nokia shares for each Infinera share.
Should Infinera choose to terminate the merger agreement, it will be liable to pay Nokia a termination fee of $65 million. Likewise, if Nokia terminates the agreement, it will have to pay $130 million.
San Jose, California-based Infinera is a global supplier of optical networking solutions and semiconductors, enabling carriers, cloud operators, governments, and enterprises to scale bandwidth, accelerate service innovation, and automate operations in long-haul, submarine, data center interconnect, and metro transport applications.
Nokia is a Finland-based global provider of mobile, fixed, and cloud network solutions, operating through Network Infrastructure, Mobile Networks, Cloud and Network Services, and Nokia Technologies segments.
The deal is expected to add to Nokia’s comparable earnings per share in the first year after close and over 10% to profits by 2027. The deal is expected to close during the first half of 2025.
Infinera’s current Price/Sales (TTM) ratio is 0.79, below the sector median of 2.97.
Nokia aims to achieve 200 million euros in net comparable operating profit synergies by 2027 through this acquisition.
For more detailed information about this M&A transaction, you can visit the Deal Metrics page here:
Deal Metrics for the acquisition of Infinera Corp. (INFN) by Nokia Corp. (NOK)
The Deal Metrics page for each merger or acquisition includes:
– A spread history chart of the merger from announcement through eventual completion or failure.
– Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– A history of deal updates.
– And much more.
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Editor’s Note: Baranjot Kaur contributed to this article