Microsoft and Opera have entered into a strategic licensing deal that allows Opera's Mini browser to serve as the default browser in all Microsoft-backed phones.

Opera Software, a Norwegian software company, has partnered with Microsoft to offer its Opera Mini browser on Microsoft handsets. Both software companies have agreed on a mutual licensing agreement for the shift.

 As a part of the deal, Opera will take over the browser building unit of Microsoft-owned Nokia to pre-install its mobile web browser in its feature phone lineup including the Asha series, the company announced Thursday.

The new partnership follows Opera's better-than-expected second-quarter earnings, reported on Thursday. The adjusted earnings before taxes and interest rose 24 percent to $27 million, out earning the $24.7 million expected figure. Opera Chief Executive Lars Boilsesen told Reuters that the deal will be profitable.

The company's Mini browser is available on all major platforms but the partnership will make it a default option on Microsoft feature phones. Opera Mini has more than 250 million users and about 100 million of these run the browser on Android phones.

Opera is hoping to  serve the large consumer base that is yet to transit to smartphones. The software company is offering a seamless mobile browsing experience for budget phones. All existing users of Opera Xpress browser on mobiles will be encouraged to upgrade to the latest Mini browser, while the new devices will come pre-loaded with Opera Mini, the company added.

"All the current user base will be encouraged to upgrade to Opera Mini and all the new phones will come with Opera Mini pre-installed as a default browser," the company said in a statement, according to Reuters. "This is a great deal for us. We have dreamed of this for more than 10 years."

The exact dates when the existing users will start receiving upgrade notifications was not revealed but a company's spokesman told GigaOm that the transition will start in October and end by December next year.