Microsoft to finalise Nokia Devices and services acquisition

Rebecca Gibson
Rebecca Gibson
By Rebecca Gibson on 22 April 2014
Microsoft to finalise Nokia Devices and services acquisition

Microsoft is to acquire the Nokia Devices and Services business on 25 April after finalising an agreement, which was first proposed in September 2013.

Enabling Microsoft to accelerate innovation and increase market adoption of Windows Phone, the US7.2 million, multinational deal has been agreed after several months of planning and negotiation. When Microsoft announced plans to acquire Nokia’s devices and services unit, as well as license some patents last September, the company said it expected the US$7.2 billion deal to close by the first quarter of this year. However, antitrust reviews of the acquisition in Asia delayed the deal’s closure until April.

Writing in a blog post Brad Smith, Microsoft’s general counsel and executive vice president of legal and corporate affairs, said that the acquisition marks a “key step on the journey towards integration.”

Smith added: “We look forward to introducing the next billion customers to Microsoft services via Nokia mobile phones.”

Both companies have made several adjustments to the original deal, agreeing that Microsoft will manage the domain and social media sites for up to one year. It has also been agreed that rather than all employees within Nokia’s chief technology office continuing to work with Nokia, the 21 China-based employees working on mobile phones will join Microsoft. In addition, Microsoft will no longer acquire Nokia’s Korean manufacturing facility.

According to CNET, a letter sent to suppliers indicated that Microsoft intends to renames Nokia Corporation/Nokia Oyj to Microsoft Mobile Oy after the deal is finalised. The letter also explained that the new wholly-owned subsidiary will serve as Microsoft’s mobile devices division, while the terms and conditions of suppliers’ contracts will not change when the deal is completed.

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