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Following the news thatNokia has completed the acquisition of Infinera Corporation; Aurojyoti Bose, Lead Analyst at GlobalData, a leading data and analytics company, offers his view.
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“After the acquisition of Fenix Group and Rapid’s technology assets in 2024, Nokia has now completed the acquisition of Infinera. Infinera’s acquisition will complement Nokia’s optical network and enable in further improving its capabilities across this technology.
“Furthermore, the combined capabilities of Nokia and Infinera are anticipated to improve the competitive positioning in optical networking solutions and the move also forms a part of Nokia’s growth strategy to strengthen its presence in North America.
“Interestingly, Nokia’s decision to acquire companies while simultaneously selling certain assets seems like a strategic manoeuvre aimed at optimizing its business portfolio and enhancing its market position. This dual approach is primarily focused on strengthening its core business segments, particularly in Network Infrastructure and Optical Networks.
“For instance, in 2024, Nokia announced the sale of its Alcatel Submarine Networks business to the French State as part of a broader strategy to actively manage its portfolio and focus on more profitable segments within its Network Infrastructure business.
“The stratagem seems to be revolving around divesting less strategic businesses and investing in core areas where Nokia sees high growth potential.”
