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Nokia acquires optical networking solutions supplier Infinera

Written by Thu 4 Jul 2024

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Finnish telecom giant, Nokia, has announced its intention to acquire Infinera, a leading supplier of optical networking solutions and optical semiconductors.

The acquisition has a stated value of £1.8 billion ($2.3 billion); 70% of which will be paid in cash. Infinera’s shareholders can elect up to 30% in the form of Nokia shares.

Infinera provides optical networking and semiconductors to carriers, cloud operators, and users to scale bandwidth and support innovation and automation. Primary applications for Infinera technology include long-haul, submarine, metro transport, and data centre interconnect.

With this acquisition, Nokia expects to support and expand its Network Infrastructure business and aligns with the strategy of moving away from telecom and into data centre services.

Enhancements to Nokia’s Optical Networks

By adding Infenera to its corporate model, Nokia will increase its Optical Networks business by 75%, significantly accelerating its product road map and development timelines. This expansion includes a bolstered digital signal processor (DSP) development team, enhanced silicon photonics and indium phosphide-based semiconductor material sciences expertise, and deeper competency in photonic integrated circuit (PIC) technology.

President of Network Infrastructure at Nokia, Federico Guillén, is focused on the opportunity presented by the Infinera acquisition.

“Today, Network Infrastructure offers a unique portfolio across the fixed access, optical, and IP networks domains built on leading technology innovation and a strong user focus,” said Guillén.

Guillén added this acquisition will further strengthen the optical pillar of the business, expand growth opportunities across all our target customer segments, and improve operating margin.

I am extremely pleased that we are bringing together these two talented and dedicated teams. Separately, we have long respected each other as competitors. Together, we find the logic of combination irresistible.”

The news follows Nokia’s recent restructuring efforts, which included selling 80% of Alcatel Submarine Networks to the French government for £296.1 million ($377.9 million). The restructuring aims to streamline Nokia’s operations and focus on three core pillars: Fixed Networks, IP Networks, and Optical Networks.

In February, Nokia and Wipro announced a new joint venture to accelerate enterprise digital transformation through a secure 5G private wireless solution.

This solution aims to provide enterprises with real-time access to business insights and the capability to process vast amounts of data with minimal latency. By enabling an integrated private network environment, enterprises can improve performance management and security.

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Written by Thu 4 Jul 2024

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