SEPT 3- It has finally happened. Nokia Corporation has announced that it has “signed an agreement to enter into a transaction” whereby it will “sell substantially all of its Devices & Services business and licence its patents to Microsoft for EUR 5.44 billion in cash, payable at closing”.
This will integrate the Microsoft’s Windows Phone operating system with its largest hardware vendor by far. While the deal will make Microsoft a big time hardware player, Nokia will shift focus to technologies and software.
“Following the transaction, Nokia plans to focus on its three established businesses, each of which is a leader in enabling mobility in its respective market segment: NSN, a leader in network infrastructure and services; HERE, a leader in mapping and location services; and Advanced Technologies, a leader in technology development and licensing,” a release said.
At closing, this transaction is expected to strengthen Nokia’s financial position and provide a solid basis for future investment in these three businesses.
“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,” said Risto Siilasmaa, Chairman of the Nokia Board of Directors and, following today’s announcement, also Nokia interim CEO.
The deal will give Microsoft all of Nokia’s devices and services business, including the mobile phones and smart devices business units, as well as an “industry-leading design team”, operations including all production facilities, sales and marketing activities, and related support functions.
At closing, approximately 32,000 people are expected to transfer to Microsoft, including approximately 4,700 people in Finland. Nokia’s Chief Technology Office will remain within the Nokia.
INDIA TODAY
