Nokia will spend $2.3 billion to acquire Infinera, a maker of optical networking semiconductors and networking equipment.
The move increases Nokia’s in-house global optical business and accelerates its product roadmap for optical technology, specifically in North America. The stock and cash deal will combine the two businesses in the development of new optical products and solutions for networking, Nokia said.
The move is important as the optical networking equipment market is one of the fastest growing segments in the market, Nokia added. The Infinera deal along with Nokia’s sale of Submarine Networks will create a network infrastructure built on three pillars: fixed networks IP networks and optical.
“In 2021 we increased our organic investment in optical networks with a view to improving our competitiveness,” said Pekka Lundmark, president and CEO of Nokia. “That decision has paid off and has delivered improved customer recognition, strong sales growth and increased profitability. We believe now is the right time to take a compelling inorganic step to further expand Nokia’s scale in optical networks.”
