Microsoft announced that it will soon close an acquisition deal with Nokia for $7.2 billion, allowing the telecommunication company to start its own mobile hardware business and integrate Windows into its smartphones.
The company's executive vice president of legal and corporate affairs confirmed the announcement in a blog post.
"Today we are excited to share that we have completed the steps necessary to finalize Microsoft's acquisition of the Nokia Devices and Services business," Brad Smith wrote. "The transaction will be completed this Friday, April 25, when we'll officially welcome the Nokia Devices and Services business as part of the Microsoft family,"
Nokia will serve as the official brand of Windows Phones developed by Microsoft. The company expressed hopes of expanding its market by convincing billions of customers to start using Windows' operating system on smartphones. The competition is tough, because most people prefer Android and Apple's iOS.
According to the latest report from the technology research firm Gartner, Android remains the OS with the biggest lion share - the tech company racked in 61.9 percent of overall tablet sales in 2013. Apple's iOS comes in second at 36 percent, while Microsoft's Windows got only 2.1 percent of the market share. Though the number is pretty low for Windows, the company had the most significant improvement in terms of sales. Officials noted a 120 percent sales increase.
Microsoft does not intend to keep the Nokia brand. The company plans to rename Nokia "Microsoft Mobile" upon closing the deal.
"Please note that upon the close of the transaction between Microsoft and Nokia, the name of Nokia Corporation/Nokia Oyj will change to Microsoft Mobile Oy," Nokia wrote in an online letter.
But Smith confirmed to InformationWeek that Nokia will keep its name for one year, while researchers work on developing more apps for Windows software.
Nokia currently offers 240,000 downloadable apps - a low figure compared to Apple or Google, which have created millions of applications.
