Microsoft has acquired Nokia Devices and Services in a deal worth approximately $5 billion, and also secured an agreement to license Nokia’s patents for $2.17 billion.
Around 32,000 Nokia employees will now switch to Microsoft, however the company has “no significant plans” to shift where the work is done so their jobs will be safe. As part of the deal Stephen Elop, currently serving as Nokia’s president and CEO, will rejoin Microsoft as Nokia executive vice president of Devices and Services.
“Building on our successful partnership, we can now bring together the best of Microsoft’s software engineering with the best of Nokia’s product engineering, award-winning design, and global sales, marketing and manufacturing,” Elop said. “With this combination of talented people, we have the opportunity to accelerate the current momentum and cutting-edge innovation of both our smart devices and mobile phone products.”
“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,” Microsoft CEO Steve Ballmer added. “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.”