Nokia Completes Acquisition of Infinera, Bolstering AI Infrastructure Capabilities

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The standalone trading of Infinera shares has now concluded. Nokia, the Finnish telecommunications equipment giant, has finalized its acquisition of the optical networking specialist. The deal, valued at $2.3 billion, was completed in late February 2025, marking the end of Infinera's independent presence on public markets.

This acquisition represents a significant strategic pivot for Nokia as it seeks to enhance its offerings for cloud service providers and large-scale data center operators, commonly referred to as webscalers. The surging bandwidth demands driven by artificial intelligence applications were a key catalyst for the transaction. Nokia identified a need to broaden its technological foundation in optical networking, a gap that Infinera is well-positioned to fill.

Infinera entered this union from a position of strength. During its 2024 fiscal year, the company generated over half of its revenue from webscaler customers. Its portfolio, including products like the ICE-X modules and ICE-D technology designed for intra-data center connectivity, brings targeted expertise to Nokia. This entire technological suite is now being integrated into Nokia’s Optical Networks business segment.

Regulatory and Financial Framework

The European Commission granted unconditional regulatory approval for the merger, clearing the final hurdle for the transaction. The $2.3 billion takeover was formally executed without any imposed concessions.

For investors, this closure initiates a new chapter. Former Infinera shareholders must now look to Nokia's stock performance, as the optical networking business operates as a wholly-owned subsidiary. The financial trajectory of these assets is now inextricably linked to Nokia’s corporate results.

Solid Foundations for Integration

Infinera reported robust financial metrics for 2024 prior to the acquisition's completion, characterized by growth in new orders and a substantial order backlog. This positive momentum is expected to support Nokia's growth ambitions within the optical networks space.

Operational integration is already underway, with the merging of product roadmaps being a primary focus. The consolidation aims to create a more comprehensive and competitive portfolio for the high-stakes market of AI and cloud infrastructure.