Infinera Stock: Nokia Acquisition Nears Completion

Nokia is on the verge of finalizing its acquisition of network equipment provider Infinera, with significant progress made toward the transaction's anticipated February 28, 2025 closing date. The Finnish telecommunications giant has transferred 127.4 million of its own shares to Citibank, which serves as the depositary for Nokia's American share repository. This move enables the distribution of shares to Infinera shareholders who elected stock-based or mixed compensation under the merger agreement, while remaining compensation will be paid in cash. The strategic acquisition, valued at $6.65 per Infinera share for a total enterprise value of approximately $2.3 billion, aligns with Nokia's board resolution from November 22, 2024, and supports the company's broader strategy to strengthen its position as an innovation leader in B2B technology. The merger agreement was originally signed on June 27, 2024, between Nokia, Neptune of America Corporation, and Infinera.

Financial Performance Before Takeover

Infinera faced significant financial challenges in the period leading up to the acquisition announcement. The company reported a net loss of $26.34 million ($0.11 per share) in the fourth quarter of 2024, a substantial decline from the net profit of $12.87 million ($0.06 per share) in the same quarter of the previous year. Revenue also decreased from $453.46 million to $414.39 million year-over-year. Despite these difficulties, Infinera achieved a non-GAAP net profit of $8.2 million ($0.03 per share). Order intake showed particularly positive development, increasing sequentially by more than 50% in Q4 2024 and approximately 20% compared to the previous year's quarter. For the full year 2024, Infinera recorded growth in orders and backlog with a book-to-bill ratio of approximately 1.1.

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Source StockWorld