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Nokia Expands Its Network Infrastructure Business – Merger Arbitrage Mondays

  • July 1, 2024

Infinera Corp. (INFN): $6.09

Market Cap: $1.23 B

Deal Size: $2.3 B

June ended with a large deal in the communications equipment industry with the acquisition of Infinera Corp. (INFN) by Nokia Corp. (NOK) for $2.3 billion.

Known globally for its candy shaped mobile phones, Nokia has reinvented itself over the last two decades as a networking equipment company. Following the acquisition of Alcatel-Lucent in 2016, it also now owns Bell Labs, now rebranded as Nokia Bell Labs. While the networking equipment business is declining, the company has been raking in the cash though licensing deals for its large patent portfolio (Nokia Technologies), which is expected to generate EUR 1.3 billion in revenue in 2024 based on the Q1 2024 run rate.

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