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Microsoft buys Nokia’s smartphones divison, Nokia retains its brand, patents, HERE and NSN units

Nokia and Microsoft leaders
  • On September 3, 2013

Microsoft is buying Nokia’s entire Device & Services unit for a price of EUR 3.79 billion, both companies announced today. Microsoft will spend another EUR 1.65 billion as a part of a license agreement, regulating the access to Nokia’s patents. The total transaction of EUR 5.44 billion will be made in cash and the deal is expected to finish in Q1 2014. Here are some important points of the agreement:

  • Microsoft acquires all of the Mobile Phones and Smart Devices units including Lumia and Asha brands, the design and the marketing/sales team
  • 32 000 people will transfer from Nokia to Microsoft, 4 700 in Finland
  • Nokia retains its Advance technologies division and all patents
  • Nokia retains the Nokia brand
  • Nokia focuses on NSN, the mapping and location business, and on Advance technologies
  • Nokia will retain its headquarters in Finland
  • Nokia will grant Microsoft 10 year non-exclusive access to its patents
  • Microsoft will grant Nokia rights related to HERE
  • Microsoft will pay a four year license for HERE
  • Stephen Elop will lead the expanded Devices team
  • Key engineers will join Microsoft

Microsoft’s CEO Steve Ballmer comments that it is a bold step into the future and the deal is win-win for everybody. According to Ballmer, joining the companies to work together will help Microsoft improve its share and profits. A strong positive effect on all partners is also expected, Steve Ballmer adds.

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

The current Nokia CEO, Stephen Elop has also commented the news. He states that combining the best of Microsoft and the best of Nokia is going to “redefine the boundaries of mobility”.

Source: Nokia