(Reuters) – Nokia will acquire Infinera Corp. in a deal with an enterprise value of $2.3 billion, the companies said on Thursday, as the Finnish company seeks to expand its optical networking business, particularly in the North American market.
Infinera shares rose nearly 22%.
The deal price of $6.65 per share represents a 26.4% premium to Infinera’s closing price of $5.26 on Thursday.
Nokia will pay Infinera at least 70% in cash. Infinera shareholders can choose to receive up to 30% of the total consideration in the form of Nokia’s American Depositary Shares, the companies said in a statement.
The deal is expected to boost Helsinki-based Nokia’s comparable earnings per share in the first year after closing and boost profits by more than 10% by 2027.
Infinera, based in San Jose, California, makes optical semiconductors and networking equipment for fixed and mobile telecommunications networks.
(Reporting by Juby Babu in Mexico City; Editing by Pooja Desai)
