Microsoft To Acquire Nokia Devices & Services Business
Microsoft and Nokia announced today that Microsoft will purchased all of Nokia’s Devices and Services Business, license Nokia’s patents, and license to use Nokia’s mapping services.
Microsoft is said to pay $5 billion for the acquisition and $2 billion in patent license, for a $7 billion total cost. The acquisition is said to close the first quarter of 2014, upon approval by Nokia’s shareholders, regulatory approvals and other closing conditions.
The partnership was announced in February 2011 between Nokia and Microsoft and with the increased success of Nokia’s Lumia smartphones, Microsoft aspires to accelerate the growth of its share and profit in mobile devices through faster innovation, increased synergies, and unified branding and marketing.
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"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," said Steve Ballmer, Microsoft chief executive officer. "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," Ballmer said. "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."
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