Nokia to complete handsets sale to Microsoft 25 April

News Wireless Global 21 APR 2014
Nokia to complete handsets sale to Microsoft 25 April

Nokia said it expects to complete the sale of its mobile phone business to Microsoft on 25 April, around a month later than originally expected. The companies recently secured one of the last, key regulatory approvals, in China. They first announced the agreement for Microsoft to buy substantially all of Nokia's Devices & Services division for EUR 3.8 billion in September 2013. As part of the agreement, Microsoft will pay EUR 1.65 billion to license Nokia's patents, bringing the total value of the deal to EUR 5.4 billion in cash. Nokia's former CEO Stephen Elop will continue to run the mobile business at Microsoft. 

Microsoft announced some small changes to the original agreement. It has agreed to manage the nokia.com domain and social media sites for both companies and their customers for up to a year. In addition, 21 employees working on mobile phones as part of Nokia's Chief Technology Office will now move to Microsoft, rather than staying with Nokia. Finally, the original deal had Microsoft acquiring Nokia’s Korean manufacturing facility. The agreement was adjusted, and Microsoft will not acquire the facility.

Categories:

Mobile

Companies:

Nokia,  Microsoft

Regions:

Global

Tags:

Handsets, M&A buyouts & divestments

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