14 DAY TRIAL // Today, Nokia has officially revealed that it has completed the sale of substantially all of its Devices & Services division to Microsoft, after announcing plans on the matter back in September last year.
The deal has already received green light from Nokia shareholders, as well as the necessary regulatory authorities, and it will result in Nokia ceasing to be a mobile phone maker.
The company has been a leader in the telecoms industry for about three decades now and has managed to connect billions of people through mobile devices.
Nokia also notes that the deal, valued at €5.44 billion ($7.2 billion), was subject to potential purchase price adjustments, and that it now expects for the total transaction price to be higher than initially unveiled.
Moving forth, most of Nokia’s employees and facilities involved in the development of mobile phones will transition to Microsoft, except for factories, including Chennai in India and Masan in the Republic of Korea.
As Nokia explains, the manufacturing facility in India is subject to an asset freeze by the Indian tax authorities and will remain with the company moving forth. Thus, Nokia will produce mobile devices for Microsoft.
The Masan facility in Korea will be closed down soon, as Nokia and Microsoft have agreed to not include it in the transaction. Nokia notes that around 200 people are currently employed at this location.
The company also notes that it will work closely with its employees at these locations to help them seek new opportunities outside Nokia “starting from a sound financial base.”
Apparently, all existing Nokia customer warranties for current devices will be honored by Microsoft, beginning April 25, 2014, the Redmond-based software giant says in a press release.
According to Stephen Elop, former Nokia President and CEO, who will serve as executive vice president of the Microsoft Devices Group, the company will also continue offering support for feature phones, the Asha family, and the Nokia X family of devices.
In an open letter, Stephen Elop also mentions the strong momentum that Nokia Lumia smartphones experienced since last year, adding that these devices continue to enjoy strong popularity among users all around the world.
“Last year alone, the awards, accolades and fan-generated rave reviews offered proof of the growing number of champions for our phones and tablets,” Elop says.
“Whether you want to read more, capture more, watch more, listen more or get more done, Nokia mobile devices have been and are your go-to choice.”
He also suggests that new, better products are expected to arrive on shelves moving forth, as the Microsoft and Nokia families become one. “From today onwards, the possibilities are endless,” he concludes.