Nokia and Microsoft jointly announced that the Redmond company will acquire the Finnish handset maker for EUR 5.44 billion ($7.17 billion USD). As part of the transaction, Nokia will sell all of its Devices & Services business as well as license its patents to Microsoft for EUR 5.44 billion in cash. Microsoft is paying 3.70 billion for the handset division and 1.65 billion for the patent licenses.
The deal is expected to close in Q1 2014 and is subject to both regulatory approval and approval by Nokia’s and Microsoft’s boards. Not surprisingly, Nokia CEO Stephen Elop will rejoin Microsoft. Joining him in the exodus to Redmond will be senior Nokia executives Jo Harlow, Juha Putkiranta, Timo Toikkanen, and Chris Weber.
With its devices and services division gone, Nokia will focus on its three remaining core businesses — NSN network infrastructure and services; HERE mapping and location services; and Advanced Technologies, its technology development and licensing arm. Nokia will continue to operate from its Finland headquarters.