Microsoft announced on Tuesday that it will be purchasing Nokia’s Mobile Phone Business Unit for $7.2 Billion (€5 billion).
As per the deal Microsoft will acquire Nokia’s smartphone and mobile phone businesses, design team and Nokia’s worldwide manufacturing and assembly facilities.
It will also acquire Nokia’s operations, sales, marketing and support team.
The deal also marks the return of Stephen Elop, Nokia’s former CEO.
On his return Elop will be handed the responsibility to lead an expanded Microsoft’s Devices team. He will also be leading the personnel coming in from Nokia.
Nokia had announced its partnership with Microsoft in February 2012, where it planned to run all its smartphones on Windows operating systems.
Microsoft CEO Steve Ballmer conveyed the news of the acquisition to his employees via email. He described the acquisition as “a bold step into the future and the next big phase of the transformation.”
Further he said, “This is a smart acquisition for Microsoft, and a good deal for both companies.”
The Finnish mobile manufacturing firm once dominated the world market. It was the leading mobile manufacturer for 14 years but lost the battle to Samsung’s Android and Apple’s iPhone. Nokia’s shares which were once valued at $38 fell to $2 in 2012 resulting in Nokia shutting down some of its manufacturing assemblies. It also announced 10,000 layoffs.
The deal will now await approval from Nokia’s shareholders and regulators and then is expected to close in the first quarter of 2014.
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