Microsoft Corp. announced it has completed its acquisition of the Nokia Devices and Services business. The acquisition has been approved by Nokia shareholders and by governmental regulatory agencies around the world. The completion of the acquisition marks the first step in bringing these two organizations together as one team.
Microsoft CEO Satya Nadella (left) and executive vice president of Microsoft Devices Group Stephen Elop share a moment as the deal that brings together Microsoft and the Nokia Devices and Services business closes today. Source: Microsoft
“Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation,” said Microsoft CEO Satya Nadella. “Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world.”
Reporting to Nadella is former Nokia President and CEO Stephen Elop, who will serve as executive vice president of the Microsoft Devices Group, overseeing an expanded devices business that includes Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products, and accessories. Microsoft welcomes personnel with deep industry experience in more than 130 sites across 50 countries worldwide, including several factories that design, develop, manufacture, market and sell a broad portfolio of innovative smart devices, mobile phones and services. As part of the transaction, Microsoft will honor all existing Nokia customer warranties for existing devices, beginning April 25, 2014.
With the Nokia mobile phone business, Microsoft will target the affordable mobile devices market, a $50 billion annual opportunity, delivering the first mobile experience to the next billion people while introducing Microsoft services to new customers around the world.
Microsoft will not be using Microsoft Mobile as a brand name for Nokia; the Lumia and Asha brands and products as well as rest of the Mobile Phone portfolio sold under the Nokia brand will be transferred to Microsoft as part of the transaction. This Nokia branded product portfolio will continue to receive full support from Microsoft. Nokia does continue to own and operate under the Nokia brand, but Microsoft has licensed the Nokia brand for Mobile Phones for 10 years, as well as for the purpose of marketing Nokia branded smart devices for a limited time.
Microsoft Mobile Oy is only the legal entity and Microsoft subsidiary to which the Nokia Devices and Services business was sold. The products and services acquired in the deal are now part of the Microsoft Devices Group, an expanded devices business that includes Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products, and accessories.
As announced previously, Microsoft will not acquire the factory in Masan, South Korea, and the factory in Chennai, India, will stay with Nokia due to the tax liens on Nokia’s assets in India that prevent transfer. As a result, Microsoft will welcome approximately 25,000 transferring employees from around the world.
