Nokia-Infinera Deal: Exposure to AI Data Centers and Diversification are key drivers
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Nokia, in its present incarnation as a telecom equipment vendor, was formed by a series of mergers & acquisitions, principally Nokia, Siemens Networks, Alcatel, Lucent, and Motorola’s cellular infrastructure group as well as some smaller acquisitions (Newbridge Networks, Ascend Communications etc.) Through Lucent and its Bell Labs heritage, the company was a pioneer in optical communications, and remains in the top tier of optical networking vendors. However, a series of strategic mishaps in the 2000s denied it dominance in this space. Thus, when Nokia announced the takeover of Infinera, the market and industry mostly reacted positively. Infinera deal could make a lot of sense if Nokia can create a strong combined product portfolio and assert strategic advantage. This presents many challenges. In this insight we will delve into the good, the bad, and the ugly of the deal.
