Microsoft Acquires Nokia’s Devices & Services Business for $7.2 billion

Microsoft has announced that it has agreed to acquire Nokia’s devices & services division and license Nokia’s patents and mapping services. Board of directors from both of the companies has approved the transaction that is expected to close in first quarter next year, pending regulatory approval.
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Microsoft has agreed to pay Nokia a total of EUR 5.44 billion (approx. $7.2 billion in US dollars). The sum includes EUR 3.79 billion for Nokia’s Devices and Services business, and another EUR 1.65 billion to license Nokia’s patents.

Back in February 2013, Nokia and Microsoft has announced a strategic partnership, where Nokia decided to ditch its aging Symbian OS in favor of Windows Phone. Now the acquisition seems to be the next step to tightly integrate Windows Phone OS with Nokia’s hardware, a strategy currently adopted by both Apple and Google (Motorola).

Here are some other relevant details from today’s announcement:

  • Microsoft will be getting 32,000 employees transferred from Nokia, including 18,300 that are “directly involved in manufacturing.
  • Nokia’s Lumia and Asha brands are also covered in acquisition. Asha and
  • Microsoft is acquiring Nokia’s Lumia (smartphones) and Asha (feature phones) brands.
  • Microsoft will pay Nokia separately for a four-year license of the HERE mapping services.
  • Microsoft has licenses Nokia’s patent portfolio on a 10-year license agreement.
  • After this acquisition, what remains of Nokia will be no more than NSN (its networks infrastructure and services business), HERE maps, and advanced technologies.

Microsoft-Nokia

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