- Acquisition expands Nokia’s optical networking business
- Deal expected to close in H1 2025
What happened: Nokia announced its acquisition of Infinera
Nokia has announced its acquisition of Infinera, a provider of open optical networking solutions, in a $2.3bn deal. The acquisition aims to enhance Nokia’s optical network capabilities, increasing its scale by 75% and accelerating its product roadmap.
Infinera specialises in advanced optical semiconductors and solutions for telecom operators, cloud providers, and enterprises. Its technology is used in long-haul, submarine, and data centre interconnect networks. The company has also been developing high-speed, low-power optical components optimised for AI workloads.
The transaction, unanimously approved by both companies’ boards, is expected to close in the first half of 2025. It remains subject to regulatory and shareholder approval. Nokia expects the deal to strengthen its market position, improve operating margins, and create new growth opportunities in optical networking.
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Why it’s important
Nokia’s acquisition of Infinera marks a significant expansion of its optical networking business. By integrating Infinera’s technology, Nokia enhances its semiconductor capabilities and strengthens its position in North America.
The deal aligns with Nokia’s strategy to focus on three core pillars: Fixed Networks, IP Networks, and Optical Networks. Nokia expects this acquisition to contribute to long-term growth and operational efficiency, targeting €200m in synergies by 2027.
With increasing demand for high-speed data transmission, AI-optimised networks, and cloud connectivity, this acquisition positions Nokia as a stronger competitor in the optical networking sector.
