In a significant development for the telecommunications industry, Infinera Corp (NASDAQ:INFN) announced today that its shareholders have voted in favor of the company's merger with Nokia (HE:NOKIA) Corporation. The approval came during a special meeting held on Monday, where a majority of Infinera's stockholders endorsed the merger agreement.
The special meeting saw the presence of 156,904,523 shares, representing a quorum. The merger proposal received 149,457,083 votes for, 4,417,088 against, and 3,030,352 abstentions. A second proposal regarding executive compensation related to the merger also passed with 145,662,352 votes for, 7,789,141 against, and 3,453,030 abstentions.
This merger, initially announced on June 27, 2024, is set to position Infinera as a wholly owned subsidiary of Nokia. The transaction is part of a broader consolidation trend in the telecom equipment sector, as companies aim to strengthen their offerings and competitive position.
Infinera, a Delaware-incorporated company known for its telephone and telegraph apparatus manufacturing, will continue its operations from its San Jose headquarters.
In other recent news, Infinera Corporation and Nokia Corporation have made progress in their planned merger, with a significant regulatory hurdle cleared under the Hart-Scott-Rodino Antitrust Improvements Act. The merger, which involves Infinera becoming a wholly owned subsidiary of Nokia, is still awaiting other regulatory approvals and the approval of Infinera's stockholders.
Recent developments also highlight Infinera's second-quarter earnings exceeding consensus estimates, with sales of $342.7 million. B.Riley and Craig-Hallum have adjusted their stance on Infinera's stock, with B.Riley reducing its price target to $6.65 while maintaining a Buy rating and Craig-Hallum downgrading its stance from Buy to Hold.
In other company news, Infinera has been selected by Italy's research and education network, GARR, to upgrade its infrastructure with the GX Series ICE6 800G coherent solution. This move is expected to double GARR's network capacity and extend its reach to Sardinia.
InvestingPro Insights
As Infinera Corp (NASDAQ:INFN) shareholders approve the merger with Nokia Corporation, InvestingPro data provides additional context to this significant development. The company's market capitalization stands at $1.59 billion, reflecting its substantial presence in the telecom equipment sector. Infinera's revenue for the last twelve months as of Q2 2024 was $1.49 billion, although it experienced a revenue decline of 9.07% during this period.
InvestingPro Tips highlight that Infinera's stock has shown a high return over the last year, with a 61.48% price total return. This performance may have influenced shareholder sentiment leading up to the merger vote. Additionally, the stock is trading near its 52-week high, with the current price at 97.62% of its peak, indicating strong market confidence in the company's prospects and the potential benefits of the Nokia merger.
It's worth noting that while Infinera has not been profitable over the last twelve months, analysts predict the company will be profitable this year. This outlook, combined with the strategic merger, could signal a positive turning point for the company's financial performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Infinera, providing deeper insights into the company's financial health and market position as it enters this new phase with Nokia.
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