The deal is expected to close in the first quarter of 2014, after shareholder and regulatory approvals. Around 32000 Nokia employees will transfer to Microsoft.
Microsoft has said that it will buy Nokia’s Devices & Services businesses for 5.44 billion euros ($7.2 billion). While the announcement has been made, the deal is expected to be finally closed in the first quarter of 2014, after shareholder and regulatory approvals. Microsoft will acquire all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.
“It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services,” said Steve Ballmer, Microsoft chief executive officer. “In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution.”
“For Nokia, this is an important moment of reinvention and from a position of financial strength, we can build our next chapter,” said Risto Siilasmaa, Chairman of the Nokia Board of Directors and, following today’s announcement, Nokia Interim CEO. “After a thorough assessment of how to maximize shareholder value, including consideration of a variety of alternatives, we believe this transaction is the best path forward for Nokia and its shareholders. Additionally, the deal offers future opportunities for many Nokia employees as part of a company with the strategy, financial resources and determination to succeed in the mobile space.”
According to the formal announcement, “Microsoft will acquire the Asha brand and will license the Nokia brand for use with current Nokia mobile phone products. Nokia will continue to own and manage the Nokia brand. This element provides Microsoft with the opportunity to extend its service offerings to a far wider group around the world while allowing Nokia’s mobile phones to serve as an on-ramp to Windows Phone.” Nokia’s long-term patent licensing agreement with Qualcomm, as well as other licensing agreements, will also be assigned to Microsoft.