BREAKING:Nokia's Strategic Acquisition of Infinera: A Game-Changer for Optical Networks as two Optica Corporate Members merge. In a significant move to bolster its network infrastructure business, Nokia has announced its acquisition of optical networks company Infinera, valuing the deal at $2.3 billion. This acquisition marks Nokia's second major shake-up in its Networks Infrastructure division within a single day. Nokia anticipates that the acquisition of Infinera will be a crucial driver towards achieving a double-digit operating margin for its Optical Networks business, which is one of three units in the revamped Networks Infrastructure division. The deal is expected to enhance Nokia's operations in North America, a region that underperformed in Q1. The acquisition offer stands at a 28% premium on Infinera's closing share price as of June 26, comprising at least 70% in cash and up to 30% in stock. Nokia emphasized that 60% of Infinera's revenue is generated from North America, with the acquisition expected to strengthen Nokia's position in the optical sector across APAC, EMEA, and Latin America. Pekka Lundmark, President and CEO of Nokia, remarked, "Now is the right time to take a compelling inorganic step to grow our optical capabilities, following our commitment to organic growth in 2021. The combined businesses have a strong strategic fit given their highly complementary customer, geographic, and technology profiles." Federico Guillén Moñino, President of Network Infrastructure at Nokia, added, "We have long respected Infinera as a competitor, but now we find the logic of combination irresistible." Nokia projects that the acquisition will expand the scale of its Optical Networks business by 75%, providing opportunities to accelerate product development and enhance its competitive edge. Key benefits expected include an expanded digital signal processor development team, expertise in silicon photonics, indium phosphide-based semiconductor materials, and advanced photonic integrated circuit technology. The acquisition is slated to close in the first half of 2025, pending approval from Infinera shareholders and regulatory authorities. With all this in mind watch Light Reading Video analyst Sterling Perrin and Infinera CEO David Heard discussing at the recent OFC Conference how the AI traffic boom is already driving optics in data center interconnect, subsea and terrestrial telecom networks, and also open new opportunities for Infinera’s chips inside the data center itself. Interesting numbers in that interview. https://lnkd.in/dKBz57Pa
Infinera: Optics is Everywhere in the AI Era
https://www.youtube.com/
Wow, that's a blast...
@Nokia Collaboration, like this one with Polariton Technologies Ltd. using Lightwave Logic, Inc. electro-optic #polymers, will go a long way into feeding the ravenous #AI-driven demand for #800G, #1600G and even future #3200G intra-#DataCenters optical links!! Very exciting news: Thank you Jose Pozo
Ruth Houbertz
8mo
What a move with this strategic acquisition. Curious what comes next. Good luck!
Sterling Perrin
8mo
Thank you for the shoutout, Jose. Thinking back to that interview, the intra-DC strategy that Infinera launched (ICE-D) seems to be a big part of Nokia's motivation. Not just DCI for hyperscalers, but this intra-DC connectivity that is very new to Infinera.
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