Microsoft Decided to Buy Nokia's Mobile Phone Unit and Services
Software giant Microsoft Corporation on 3 September 2013 decided to acquire Nokia’s mobile devices and services.
Microsoft Corporation and Nokia Corporation on 3 September 2013 announced that both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.
Under the terms of the agreement, Microsoft will pay 3.79 billion Euros to purchase substantially all of Nokia’s Devices & Services business, and 1.65 billion Euros to license Nokia’s patents, for a total transaction price of 5.44 billion Euros in cash.
The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia’s shareholders, regulatory approvals and other closing conditions.
Under the terms of the agreement, 32000 people of Nokia Company are expected to transfer to Microsoft, including 4700 people in Finland and 18300 employees directly involved in manufacturing, assembling and packaging of products worldwide.
In India, the deal is expected to pave the way for Microsoft to leverage Nokia’s strong distribution and manufacturing base. The factory at Sri Perumbudur near Chennai is one of the biggest factories for Nokia.
Nokia Corporation is a Finnish multinational communications corporation, headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki.
Nokia’s principal products are mobile telephones and portable IT devices with 128445 employees in 120 countries, sales in more than 150 countries.
1871: Founded by Fredrik Idestam. Nokia engaged in making of Paper, tyres, boots and cables for 100 years.
1987: Launched its first phone the Mobira Cityman that weighed almost 1kg.
1992: Sells non-mobile divisions and launches first digital GSM phone, the Nokia 1011.
2003: Basic 1100 phone launched. Goes on to sell 250 million units and become the world's most popular consumer electronic device.
2011: Abandons Symbian mobile phone operating software and switches to the Windows platform instead.
2013: Launched the Lumia 1020 boasting a 41 megapixel camera.