Microsoft to buy Nokia’s devices & services business, license Nokia’s patents and mapping services for $7.17
Microsoft announced that it will purchase all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.
Microsoft will pay EUR 3.79 billion to purchase substantially all of Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents, for a total transaction price of EUR 5.44 billion ($7.17 billion) in cash.
Nokia President and CEO to become Nokia Executive Vice President of Devices & Services “which includes all of our current Devices and Studios work and most of the teams coming over from Nokia”.
The transaction is expected to close in the first quarter of 2014.
In a press release Microsoft chief executive officer Steve Ballmer said,
“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.” “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.”
“We are excited and honored to be bringing Nokia’s incredible people, technologies and assets into our Microsoft family. Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we anticipate a smooth transition and great execution,” Ballmer said. “With ongoing share growth and the synergies across marketing, branding and advertising, we expect this acquisition to be accretive to our adjusted earnings per share starting in FY15, and we see significant long-term revenue and profit
opportunities for our shareholders.”
Source: Microsoft