Microsoft to Acquire Nokia’s Mobile Unit for €5.4Bn

Microsoft Corp. has announced that it will acquire Nokia’s Devices & Services business, license Nokia’s patents and mapping services for a total of €5.4 billion. Microsoft said it will pay €3.79 billion to purchase substantially all of Nokia’s Devices & Services business, and €1.65 billion to license Nokia’s patents. Microsoft said “The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia’s shareholders, regulatory approvals and other closing conditions and will draw upon its overseas cash resources to fund the transaction.” In February 2011 Microsoft partnered with Nokia to have Nokia phones come on Windows Mobile and hopes to ensure faster innovation, increased synergies, and unified branding and marketing, with the acquisition. “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.” Nokia’s Stephen Elop is “stepping aside as Nokia President and CEO to become Nokia Executive Vice President of Devices & Services