Finnish vendor Nokia has completed the €2.19 billion ($2.3bn) acquisition of networking firm Infinera.
The San Jose, California-based company is now part of Nokia.
Nokia’s plans to acquire Infinera surfaced last June, and Infinera said last week it was close to completion.
The EU Commission approved the multi-billion euro acquisition on February 27.
The Infinera team will join Nokia’s optical networks business. Infinera CEO David Heard is set to join Nokia’s network infrastructure business as chief strategic growth officer.
“This transaction will significantly improve our scale and profitability in optical networks and allows us to speed up the pace of innovation to meet the requirements of the AI era,” said Pekka Lundmark, Nokia’s outgoing president and CEO. “The Infinera acquisition will accelerate our growth strategy in data centers and strengthen our presence both in North America and with webscale customers.”
Lundmark will step down from his role, effective from April 1, with Intel data center executive Justin Hotard set to take over.
In October, Lundmark said Nokia sees a “significant opportunity” to expand its presence in the data center market.
The vendor extended its existing agreement to supply Microsoft Azure with data center routers and switches. Then, in December, Nokia and Kyndryl announced plans to offer advanced data center networking solutions and services to global enterprises.
In September, Nokia also announced the launch of a data center automation platform which it describes as an “event-driven automation” (EDA) platform.
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