14 DAY TRIAL // We already reported about six months ago that Nokia planned to sell its luxury phone brand Vertu to the highest bidder. Two months ago, rumors pointed to a possible acquisition of the brand by private equity firm Permira.
According to sources close to the matter, the British private equity company expressed its intentions to purchase Vertu for around €200 million ($265 million).
This would have made a nice addition for Permira, which also owns other luxury brands, including Hugo Boss and Valentino.
However, it appears that something went wrong or another player in the market made a better offer. In this regard, Nokia officially announced that its Vertu brand has just been acquired by another private equity group called EQT VI.
Although the terms of the deal are confidential, the Finnish company mentions that the transaction is expected to close in the second half of the year.
“With its strong brand, undisputed category leadership and attractive growth outlook, Vertu fits well with EQT VI's investment strategy. EQT VI is excited about the opportunity to develop Vertu as a standalone company and plans to drive the development of the luxury mobile phone category through significant investments in retail expansion, marketing and product development,” said Jan Stahlberg, partner at EQT Partners, Investment Advisor to EQT VI.
EQT VI is part of the leading private equity group in Northern Europe and confirms that it has acquired 90% majority shareholding in Vertu. Nokia will still retain a 10% minority shareholding in Vertu.
Vertu is currently headquartered in Church Crookham, UK and has about 1,000 employees. The company has a long experience in manufacturing luxury phones and providing services directly to mobile handsets through Vertu Concierge.
“This is a logical next step in the evolution of Vertu as the world leader in luxury mobile products. We believe that EQT VI will position Vertu to continue to grow and lead in our marketplace,” said Perry Oosting, president of Vertu.