Nokia CEO Pekka Lundmark has stated that the timing for the acquisition of Infinera was right. According to Lundmark, Nokia is buying Infinera at a time when the market is about to grow. The acquisition of Infinera, a US semiconductor company specializing in optical networks, will cost Nokia 2.3 billion dollars or 2.1 billion euros. This move is seen as accelerating Nokia’s renewal process.
Managing director Pekka Lundmark considers the deal significant as it will help reduce Nokia’s dependence on investments from telecom operators. Infinera is known for manufacturing optical network equipment, especially in optical connections needed for data centers. The demand for optical networks is expected to increase with the rise of artificial intelligence and cloud services.
Nokia has been aiming to increase its business customer base and reduce reliance on telecom operators. The market for mobile phone network devices is not showing significant growth in the coming years due to delayed investments by operators. By acquiring Infinera, Nokia hopes to strengthen its position among technology giants operating data centers.
The deal with Infinera is expected to improve Nokia’s market share in optical networks to close to 20 percent. This will help Nokia compete with industry leaders like Huawei. The company plans to complete the transaction by spring next year and looks to achieve cost benefits of 200 million euros through synergies between the two companies.
Overall, the acquisition of Infinera is part of Nokia’s strategy to expand its customer base and enhance its technological leadership in the market. Lundmark has mentioned that Nokia will continue to explore potential acquisitions in the future to drive growth and innovation in the company
