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Microsoft is set to acquire Nokia’s devices and services business — including the Lumia smartphone range — and also license and use Nokia’s mapping service.
(Credit: Nokia)
The deal will see Microsoft pay Nokia €3.79 billion for the business purchase, and a further €1.65 billion in license fees for the maps. The whole deal will be worth €5.44 billion (approximately AU$7.95 billion).
According to the official statement from Microsoft, the deal will include: “the Mobile Phones and Smart Devices business units, as well as an industry-leading design team, operations including all Nokia Devices & Services-related production facilities, Devices & Services-related sales and marketing activities and related support functions”.
In all, around 32,000 employees will be transitioned to Microsoft, “including 4700 people in Finland and 18,300 employees directly involved in manufacturing, assembly and packaging of products worldwide”.
The deal will also include Nokia’s long-term patent licensing agreement with Qualcomm.
Both Nokia and Microsoft have scheduled press conferences for later today in Finland and the US, and Nokia has scheduled an Extraordinary General Meeting for 19 November.
This is a developing story, and we will update with more detail soon.
