Nokia's official website announced on June 27 that the company will acquire Finisar, a global supplier of optical network solutions and optical semiconductors, according to TapTechNews on June 28.
Finisar is a vertically integrated manufacturer headquartered in San Jose, California, USA. It is a pioneer in the design and manufacturing of large-scale photonic integrated circuits (PICs), and its main business is to produce optical semiconductors and network equipment for fixed-line and mobile telecommunication networks.
The two sides have reached a final agreement. Nokia will acquire Finisar at $6.65 per share or $2.3 billion (TapTechNews note: currently about 16.755 billion Chinese yuan).
The deal represents a 28% premium over Finisar's share price as of the close on June 26, 2024, and a 37% premium over the volume-weighted average price (VWAP) over the past 180 days. At least 70% of the transaction will be paid in cash, and the rest includes Nokia's American depositary shares. Finisar shareholders can choose cash, Nokia shares, or a combination of both.
Nokia believes that this transaction has financial and strategic value. The merger with Finisar is expected to accelerate Nokia's optical network business to achieve a double-digit operating profit margin.
Nokia expects that in the first year of the acquisition, it will increase Nokia's comparable operating profit and earnings per share, and achieve more than 10% earnings per share growth in 2027.
In addition, Nokia has agreed to sell its submarine network business ASN to the French government at a price of 350 million euros (currently about 2.729 billion Chinese yuan), but this transaction will not affect its financial prospects.