The deal between Microsoft and Nokia has finally been completed with the Finnish maker selling almost all of its handset business to the world software leader.
Microsoft, the world's biggest software company, has finally completed the sale of Nokia Devices and Services business, Friday, after first announcing the deal in September 2013. The deal was valued at 5.44 billion Euros ($7.2 billion), which breaks down to 3.79 billion Euros ( $5 billion)for Nokia's devices and services divisions and 1.65 billion Euros ($2.18 billion)for its patents.
The deal was completed after a series of ups and downs. During the eight-month period while the deal was in process, the Redmond-based software company witnessed a change of CEOs from Steve Ballmer to Satya Nadella. The software giant cleared a major hurdle when China's Ministry of Commerce approved the transaction this month and the deal was since put on fast track.
"Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation," Microsoft CEO Satya Nadella, said in a press release, Friday. "Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world."
The completion of the deal brings most of Nokia's manufacturing and assembly facilities under Microsoft's ownership, but the software giant will not take ownership of the factory in Masan, South Korea and the factory in Chennai, India, will be owned and run by Nokia due to the tax issues from the national authorities that prevent the transfer. Rumor has it that HTC is looking to snap up the Chennai plant if Nokia decides to put it up for sale. Overall, Microsoft will be welcoming nearly 25,000 transferred employees from around the world.
he most notable change in the company's high-rank employee system is Stephen Elop's new position as the executive vice president of the Devices Group at Microsoft, a move that was reported in February. Elop will supervise devices business for the software company, which includes Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products, and accessories, Microsoft said in its press release.
