Infinera for sale?Created March 16, 2023
Infinera is reportedly exploring options that include a sale of the company, according Reuters news agency. Sourcing “a person familiar with the matter”, Reuters says the San Jose, California-based company, which has a market value of US$1.6 billion, is working with investment bank Centerview Partners on a sale process that will launch in a few weeks. Infinera shares rose over 11% on the news in afternoon trade on 14th March, to US$7.64 a share. The company’s shares were down 15% in the last 12 months, almost double the average of its peers, as it tried to recover from supply chain bottlenecks and boost its profit margins, says Reuters.
There is no certainty that Infinera will reach any deal, added the source, who requested anonymity because the deliberations are confidential. Infinera did not respond to Reuters’ requests for comment, and Centerview declined to comment. Oaktree Capital, the credit investment firm controlled by Brookfield Asset Management Ltd, sold its equipment maker Coriant to Infinera in 2018 for a reported US$450 million in cash and stock and currently holds a seat on Infinera’s board. An Oaktree spokesperson declined to comment.
Infinera has recently announced a plethora of new product launches at OFC, including an upgrade of it’s ICE optical engine to version 7. The company has also scored several subsea wins and successful trials in the last six months, including Agar Telecom’s Monet cable, Unity’s US – Japan Cable, Seacom’s Equiano Africa – Europe route and EXA’s Trans Adritatic Express cable.
For more information, visit www.infinera.com