(Reuters) – Nokia will acquire Infinera (NASDAQ:) Corp in a deal valued at $2.3 billion, the companies said on Thursday, as the Finnish firm seeks to expand its optical networking business, particularly in the North American market.
Infinera shares rose almost 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 (HE:) will pay Infinera at least 70% in cash. Infinera shareholders may elect to receive up to 30% of the total consideration in the form of Nokia American Depositary Shares, the companies said in a statement.
The deal is expected to boost Helsinki-based Nokia’s like-for-like earnings per share in the first year after closing and more than 10% to earnings by 2027.
Infinera, based in San Jose, California, manufactures optical semiconductors and networking equipment for fixed and mobile networks.