Microsoft has acquired Nokia’s Devices and Services business in a $7.2 billion cash deal, GamesIndustry reports. The deal also gives Microsoft the right to license all of Nokia’s patents and mapping services.
The deal includes €3.79 billion for “substantially all” of Nokia’s Devices and Services business and a further €1.65 billion to license patents. The deal will reportedly be completed in Q1 2014.
As a result, Nokia CEO Stephen Elop will step down to take the role of executive vice president of Devices and Services. 32,000 Nokia employees will also transition to Microsoft.
“It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies,” Microsoft boss Steve Ballmer said in a memo, in part. “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.”
(via VG247)