Microsoft to acquire Nokia’s Devices & Services for 5.44 Billion Euro

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The hot news just announced jointly by Microsoft and Nokia is that Microsoft is ready to pay EUR 3.79 billion to purchase the Nokia Devices & Services business, and additional EUR 1.65 billion to license Nokia’s patents, for a total transaction price of EUR 5.44 billion in cash.

It is expected that the transaction will be finalised in the first quarter of 2014, subject to approval by Nokia’s shareholders, regulatory approvals and other closing conditions.

On the corporate site, Steve Balmer, Microsoft chief executive officer commented the deal:

“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.”

“For Nokia, this is an important moment of reinvention and from a position of financial strength, we can build our next chapter,”

said Risto Siilasmaa, Chairman of the Nokia Board of Directors

“Building on our successful partnership, we can now bring together the best of Microsoft’s software engineering with the best of Nokia’s product engineering, award-winning design, and global sales, marketing and manufacturing,”

said Stephen Elop, who following today’s announcement is stepping aside as Nokia President and CEO to become Nokia Executive Vice President of Devices & Services.

This is a very hot development. Let us see now how the Nokia devices and the integrated Microsoft Windows Phone 8 OS develop.

Source: Microsoft News Center