05:46 PM EDT, 06/27/2024 (MT Newswires) -- Nokia (NOK) has agreed to acquire Infinera ( INFN ) in a transaction valuing Infinera ( INFN ) at $6.65 per share, or an enterprise value of $2.3 billion, the companies said Thursday.

The deal represents a 28% premium to Infinera's ( INFN ) Wednesday closing stock price, the companies said.

Nokia expects the acquisition to be accretive to its comparable per-share earnings in the first year post-close and to deliver more than 10% comparable EPS accretion by 2027.

For every Infinera ( INFN ) share, the company's shareholders can elect to receive either $6.65 in cash, about 1.79 Nokia American depositary shares, or a combination of $4.66 in cash and roughly 0.54 Nokia ADSs. Nokia shares to be issued in the transaction cannot exceed an amount equal to 30% of the total consideration, the companies said.

Nokia's board has committed to expand and accelerate its share repurchase program to offset the dilution from the deal.

The deal is expected to close during H1 of 2025, subject to approvals by Infinera's ( INFN ) shareholders and regulators and other conditions.

Infinera ( INFN ) shares were up past 21% in after-hours activity, while Nokia was slightly lower.

Price: 3.7150, Change: -0.02, Percent Change: -0.40