Microsoft announced the long-awaited finalization of the deal to acquire the Nokia handset business after receiving necessary regulatory approvals.
Microsoft, the world's largest software company, announced Monday that it is on the final step of completing its most awaited deal to acquire Nokia Devices and Services business. The transaction will conclude Friday April 25, following approval and sorting of a number of regulatory and tax issues. The $7.5 billion deal will bring Nokia's handset business including license and use of the company's patents and mapping services under Microsoft's ownership.
Microsoft announced plans of acquisition of Nokia last year, and the deal was expected to be completed in the first quarter of this year after approvals from Nokia's shareholders, the regulatory board and other legal closing conditions. As a part of the $7.5 billion (5.4 billion Euros) agreement between the two companies, Microsoft will pay 3.79 billion Euros to purchase Nokia's Devices and Services business and another 1.65 billion Euros to license the Finnish maker's patents. The deal will be carried out in all cash.
"The completion of this acquisition follows several months of planning and will mark a key step on the journey towards integration," Brad Smith, Microsoft's General Counsel & Executive Vice President, Legal & Corporate Affairs, wrote in the company's official blog, Monday. "This acquisition will help Microsoft accelerate innovation and market adoption for Windows Phones. In addition, we look forward to introducing the next billion customers to Microsoft services via Nokia mobile phones."
In addition to the announcement of the deal, Smith also highlighted some last minute changes that will be made to the original agreement. Microsoft will take control of Nokia's official domain and social media sites for up to a year. The Redmond giant will also acquire Nokia's Korean manufacturing facility, as the original deal did not include the foreign plant acquisition.
Finally, Microsoft will also hire Nokia's 21 employees working in the mobile phone division in China.
As a part of the change, Microsoft is reportedly planning to rename the handset division from Nokia to Microsoft Mobile, an internal letter posted last week suggests, Information Week reports.
