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#Microsoft to acquire #Nokia’s devices & services business

This is interesting, but I must admin that I’m not that surprised…

Microsoft to buy Nokia's devices, services unit for $7.2B

Microsoft to acquire Nokia’s devices & services business, license Nokia’s patents and mapping services

REDMOND, Washington and ESPOO, Finland – Sept. 3, 2013 – Microsoft Corporation and Nokia Corporation today announced that the Boards of Directors for 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 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 in cash. Microsoft will draw upon its overseas cash resources to fund the transaction. 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.

Building on the partnership with Nokia announced in February 2011 and the increasing success of Nokia’s Lumia smartphones, Microsoft aims to accelerate the growth of its share and profit in mobile devices through faster innovation, increased synergies, and unified branding and marketing. For Nokia, this transaction is expected to be significantly accretive to earnings, strengthen its financial position, and provide a solid basis for future investment in its continuing businesses.

“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,” said Steve Ballmer, Microsoft chief executive officer. “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…. continue reading MS News post here

Microsoft-Nokia deal: 11 quick facts – by Zack Whittaker

Summary: Microsoft’s bid to buy Nokia came late on Monday. Despite rumors to that effect over the past year since Nokia’s financial troubles began, few expected the deal to go ahead quite like this. We explore what’s going down, with whom, and when.

Microsoft and Nokia: together at last.

The two companies announced late on Monday that Microsoft will acquire Nokia’s phone making unit for about $7.2 billion in total — including patents — allowing the (now) former Finnish phone maker to expand its presence and technologies in other markets.

The rationale behind the deal is to secure the Windows Phone ecosystem, as well as accelerating Microsoft’s phone market share. In a presentation published on Monday[PDF], Microsoft said it wants to bring “one brand” through a “united voice.” 

Nokia will retain its other technology units, including Nokia Solutions and Networks (formerly Nokia-Siemens Networks), Nokia HERE, its CTO office, and its patent portfolio.

With so many moving parts, we’ve picked out the key facts of the complicated, length, and likely to be scrutinized deal, which is expected to close in the first quarter of 2014.

  • The deal is split between the phone making unit and Nokia’s patents. Microsoft will spend $5 billion (€3.79bn) on the phone making unit, and $2.17 billion (€1.65bn) on licensing Nokia’s patents.
  • 32,000 Nokia employees will transfer to Microsoft, including 4,700 people in Finland.
  • Nokia sold 7.4 million Lumia smartphones in the second quarter of 2013.
  • Nokia chief executive Stephen Elop, who previously served as an executive at Microsoft, will once again join the software giant, heading up the phone-making division that Microsoft just bought.
  • Microsoft’s Julie Larson-Green, currently in charge of the company’s own devices and studios team, will continue to work on the Xbox One and Surface devices, but will join Elop’s team once the deal closes.
  • All Microsoft and Nokia global marketing will fall under current executives Tami Reller and Mark Penn.
  • During that same quarter, Microsoft sold 53.7 million…

Continue reading here

//Richard

 

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