Published on : Apr 25, 2014
Nokia announced that the deal for its mobile handsets business with Microsoft was completed on Friday, April 25, 2014. The deal, originally announced in September 2013, includes an agreement to sell all of Nokia’s mobile devices and services and also an agreement to license patents to Microsoft, following which, Nokia agrees to produce mobile devices for Microsoft.
The Chennai manufacturing plant of Nokia, one of the company’s largest plants, was kept outside the deal following an asset freeze of the faculty by Indian authorities due to ongoing tax procedures. Nokia’s another manufacturing unit in Masan, South Korea, has also been kept out of the deal.
The value of the deal, as expected by Nokia, is slightly higher than the earlier proclaimed USD 7.2 billion after final analysis of the closing balance sheets of the company.
The deal, completed after a month’s delay than its earlier expected date, is largely seen as Microsoft’s anticipated entry in the economy mobile devices market and is expected to bring revenues near to USD 50 billion to the tech giant.
Microsoft will continue to provide warranties given by Nokia to its existing customers and absorb Nokia’s 25,000 global employees.