Here are the major highlights of the deal.
Zee Media Bureau
New Delhi: Aiming to fortify its position in the smartphone market, software giant Microsoft Corp on Tuesday said it would buy Nokia's mobile phone business for 5.44 billion euros.
Here are the major highlights of the deal:
• The deal is expected to close in the first quarter of 2014 and is subject to approval by Nokia's shareholders and regulatory approvals.
• The acquisition will also include licence and use of Nokia's mapping services.
• Following the deal, Nokia plans to focus on its three established businesses -- network business (Nokia Siemens Networks), mapping and location services (HERE); and Advanced Technologies (technology development and licensing).
• Under the terms of the agreement, Microsoft will pay 3.79 billion euros to purchase all of Nokia's devices and services business and 1.65 billion euros to getting access to Nokia's patents -- a total of 5.44 billion euros in cash.
• Microsoft will draw upon its overseas cash resources to fund the transaction. The deal is expected to close in the first quarter of 2014, subject to approval by Nokia's shareholders, regulatory clearances and other closing conditions.
• With the closing of the deal, about 32,000 people are expected to transfer to Microsoft, including 4,700 people in Finland and 18,300 employees directly involved in manufacturing, assembling and packaging of products worldwide.
• Stephen Elop will step aside as President and CEO of Nokia Corporation. He will resign from the Board of Directors, and become Executive Vice President, Devices & Services.
• Elop, along with Jo Harlow (Executive Vice President, Smart Devices), Juha Putkiranta (EVP, Operations), Timo Toikkanen (EVP, Mobile Phones) and Chris Weber (EVP, Sales and Marketing) would move to Microsoft at the anticipated closing.
• Timo Ihamuotila will become President of Nokia for the interim period and also continue to serve as CFO. Risto Siilasmaa, Chairman of the Nokia Board of Directors, has taken over as Nokia interim CEO.
• Nokia will retain its headquarters in Finland.
With Agency Inputs