Nokia CEO Pekka Lundmark believes that the timing for the acquisition of Infinera was perfect. The company is buying a US semiconductor company specializing in optical networks at a time when the market is set to grow, which will help accelerate Nokia’s renewal process. The deal will cost Nokia 2.3 billion dollars or 2.1 billion euros, and it is seen as significant as it will 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, which is expected to increase with the rise of artificial intelligence and cloud services. By acquiring Infinera, Nokia hopes to strengthen its position among technology giants operating data centers and increase its market share in optical networks to close to 20 percent, helping it compete with industry leaders like Huawei.
The transaction is expected to be completed by spring next year, and the company aims to achieve cost benefits of 200 million euros through synergies between the two companies. Lundmark has stated that this move is part of Nokia’s strategy to expand its customer base and enhance its technological leadership in the market. He also mentioned that Nokia will continue to explore potential acquisitions in the future to drive growth and innovation in the company.
The acquisition of Infinera will help reduce Nokia’s dependence on investments from telecom operators and strengthen its position among technology giants operating data centers. It will also help Nokia increase its market share in optical networks, allowing it to compete with industry leaders like Huawei. Overall, this move represents an important step towards achieving Nokia’s long-term growth goals.
Lundmark believes that this acquisition was timed perfectly as he sees a growing demand for optical networks due to increased adoption of AI and cloud services. He stated that this move will accelerate Nokia’s renewal process by expanding its customer base and enhancing its technological leadership in the market.
Nokia has been working hard to diversify its revenue streams beyond telecom operators by increasing business customers’ base and reducing reliance on them. This move aligns with this strategy as Infinera specializes in manufacturing equipment needed for data centers.
In conclusion, the acquisition of Infinera represents a significant milestone for Nokia as it moves towards expanding its customer base and enhancing its technological leadership in the market. This move is expected to improve Nokia’s market share in optical networks significantly while generating cost savings through synergies between the two companies.
Lundmark has stated that this move represents an important step towards achieving long-term growth goals for Nokia as he sees a growing demand for optical networks due to increased adoption of AI and cloud services. With this acquisition, Nokia hopes to strengthen its position among technology giants operating data centers while reducing reliance on telecom operators investments.
This acquisition marks an essential step towards achieving long-term growth goals for