Summary by Futu AI
Nokia Corporation has announced a definitive agreement to acquire Infinera Corporation, a global supplier of innovative open optical networking solutions, for $6.65 per share, amounting to an enterprise value of $2.3 billion. The transaction, expected to close in the first half of 2025, is set to enhance Nokia's scale in optical networks by 75% and accelerate its product roadmap, particularly strengthening its position in North America. The acquisition is anticipated to be accretive to Nokia's comparable operating profit and EPS in the first year, with a target of over 10% comparable EPS accretion by 2027. Nokia plans to finance the deal with cash on hand and will increase its share buyback program to offset dilution from the equity component of the acquisition. The transaction has received unanimous approval from both companies' boards and is subject to Infinera shareholder and regulatory approvals. Oaktree Optical Holdings, L.P., owning approximately 11% of Infinera's common stock, has agreed to vote in favor of the transaction.