Nokia is set to purchase Infinera Corp for 2.3 billion USD in order to grow its optical network business, particularly in the North American market, according to both companies.

Infinera's stock price skyrocketed by almost 22%.

The price of 6.65 USD per share is 26.4% higher than Infinera's closing price of 5.26 USD on Thursday.

Nokia plans to pay Infinera with a minimum of 70% in cash. In a statement, both companies announced that Infinera shareholders have the option to receive as much as 30% of the total payment in Nokia's American Depositary Shares.

It is projected that the agreement will increase Helsinki-headquartered Nokia's earnings per share in the first year after completion and boost profits by more than 10% by 2027.

Infinera, headquartered in San Jose, California, produces optical semiconductors and networking equipment for both fixed line and mobile telecommunications networks.