Nokia sells cellphone, services division to Microsoft in US$7.5 billion deal
By Matti Huuhtanen
April 26, 2014, 12:01 am TWN
HELSINKI--Nokia said Friday it has completed the 5.44-billion-euro (US$7.5 billion) sale of its troubled cellphone and services division to Microsoft Corp.. The closure of the deal, which includes a license to a portfolio of Nokia patents to Microsoft Corp., follows delays in global regulatory approvals, and ends the production of mobile phones by the Finnish company, which had led the field for more than a decade, peaking with a 40-percent global market share in 2008.
Nokia said the total transaction price would be "slightly higher" than when it was originally announced on Sept. 3 because of adjustments made for net working capital and cash earnings.
"The new Nokia can now go forward and concentrate on its remaining assets," said Neil Mawston from Strategy Analytics, near London. "It has one of the best IPR (intellectual property rights) assets in the entire industry and it has good mapping services."
Nokia said two plants will remain outside the deal — a manufacturing unit in Chennai, India, subject to an asset freeze by Indian tax authorities, and the Masan plant in South Korea, which it plans to shut down. The adjustments have no impact on the deal, the company said.
Microsoft said it will acquire some 25,000 Nokia employees in 50 countries. More than 4,000 in Finland will transfer to Microsoft and the Nokia headquarters in Espoo, near the Finnish capital, Helsinki, will be taken over by the U.S. giant.