Microsoft Acquires Nokia's Devices & Services Arm, Patent Licenses
September 3, 2013 at 10:42 AM (PT)
MICROSOFT CORP. announced that it will purchase substantially all of NOKIA's Devices & Services business, license NOKIA's patents, and license and use NOKIA's mapping services. MICROSOFT will pay EUR 3.79 billion for all of NOKIA's Devices & Services business, and EUR 1.65 billion to license NOKIA's patents, for a total transaction cost of EUR 5.44 billion in cash.
"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 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," BALLMER added. "Given our long partnership with NOKIA and the many key NOKIA leaders that are joining MICROSOFT, we anticipate a smooth transition and great execution," "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."
MICROSOFT has published a document summarizing the strategic rationale for the agreement here.