Nokia to acquire Infinera in $2.3 billion deal to scale up optical network

Nokia releases third quarter results

(Reuters) -Nokia will acquire Infinera Corp in a deal with an enterprise value of $2.3 billion, the companies said on Thursday, as the Finnish firm looks to expand its optical network business, especially in the North American market.

Shares of Infinera surged nearly 22%.

The deal price of $6.65 per share represents a premium of 26.4% to Infinera's closing price of $5.26 on Thursday.

Nokia will pay Infinera at least 70% in cash. Infinera's shareholders can elect to receive up to 30% of the aggregate consideration in the form of Nokia's American Depositary Shares, the companies said in a statement.

The deal is expected to add to Helsinki-based Nokia's comparable earnings per share in the first year after close and over 10% to profits by 2027.

San Jose, California-based Infinera makes optical semiconductors and networking equipment for fixed line and mobile telecommunications networks.

(Reporting by Juby Babu in Mexico City; Editing by Pooja Desai)