Microsoft has acquired Nokia’s Devices & Services business and they will be using their overseas cash to fund this transaction. The amount Microsoft paid is less than what they paid when acquiring Skype for $8.5 billion.
With this transaction, the company will also license Nokia’s patents, and license and use Nokia’s mapping services.
The total amount paid is 5.44 billion and it is divided into EUR 3.79 for Devices & Services business and EUR 1.65 to license Nokia’s patents. The company expects to finish this transaction in the first quarter of 2014.
This would be one of the biggest decisions by Microsoft CEO Steve Ballmer after he announced that he would step down from the company within a year.
“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, marketing and distribution.”
“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 is set to become Nokia Executive Vice President of Devices & Services.
Microsoft has licensed Nokia’s patents for a 10-year period and Nokia still retains its patent portfolio.
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