Microsoft has agreed a £4.6 billion deal to buy Nokia’s mobile phone business – the deal is expected to conclude early 2014
Microsoft has bought smartphone manufacturer Nokia for €5.4 billion (£4.6 billion).
Under the deal Nokia’s 32,000 employees will transfer to Microsoft when the deal is completed in early 2014. The purchase includes Nokia’s devices and services division, its patents and its ‘Here’ mapping service.
The announcement comes two years after Microsoft signed a deal with Nokia that has seen the manufacturer use its Windows Phone operating system in its devices.
Nokia announced that as part of the deal, its CEO Steven Elop will step down from his position and resign from the company’s board. He will become the executive vice president of Nokia’s devices and services unit, and the manufacturer expects him to transfer to Microsoft when the deal is concluded.
Nokia chairman of the board Risto Siilasmaa (pictured right) assumes the position of interim CEO while a replacement is found for Elop.
Microsoft chief executive officer Steve Ballmer (pictured left) said the purchase will start to positively impact Microsoft’s earnings in fiscal year 2015, and increase the company’s share and profits in mobile phones.
Ballmer said: “It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services.
“In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution.”
“We are excited and honored to be bringing Nokia’s incredible people, technologies and assets into our Microsoft family. Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we anticipate a smooth transition and great execution.
“With ongoing share growth and the synergies across marketing, branding and advertising, we expect this acquisition to be accretive to our adjusted earnings per share starting in fiscal year 2015, and we see significant long-term revenue and profit opportunities for our shareholders.”