14 DAY TRIAL // Nokia has recently confirmed that Microsoft’s acquisition of its Devices and Services business will close on April 25. The official announcement highlighting Microsoft’s plans to acquire Nokia for $7.2 billion (€5.22 billion) went live back in September 2013, which means that it took the companies about 7 months to close the deal.
One of the new changes that Microsoft plans for the newly acquired Nokia Devices and Services business is to rename it to reflect these changes.
According to a leaked internal Nokia letter to its suppliers published by NokiaPowerUser, Nokia Oyj name will be changed to Microsoft Mobile Oy, probably beginning April 25. Here is the passage from the letter that highlights the renaming of Nokia Devices and Services division:
“Please note that upon the close of the transaction between Microsoft and Nokia, the name of Nokia Corporation/Nokia Oyj will change to Microsoft Mobile Oy. Microsoft Mobile Oy is the legal entity name that should be used for VAT IDs and for the issuance of invoices.”
Besides the name change, Nokia’s letter also mentions that none of the current suppliers will be affected by the transition. The letter confirms that Microsoft will maintain all agreements with suppliers in their current state, so no changes are expected here.
“Under the terms of the sale, Microsoft will assume all rights, benefits and obligations of the Nokia Devices and Services business, including Nokia’s agreements with suppliers, customers and partners which pertain to the Devices and Services business.
Therefore, the purpose of this letter is to update you that the current terms and conditions that you have with the Devices and Services business will not change.”
However, some of these suppliers may also have agreements with Nokia’s remaining businesses, such as HERE Maps. The letter mentions that these suppliers will receive communications separately, directly from Nokia.
“In addition to becoming a supplier for Microsoft Mobile Oy, we appreciate that you might also remain a supplier to the continuing businesses of Nokia (i.e., NSN, HERE or Advanced Technologies) after the close of the transaction between Microsoft and Nokia Devices and Services.
Nokia will communicate separately any changes in invoicing methods and addresses before the close of this transaction.”
The changes mentioned in this letter for suppliers make perfect sense, so there’s no surprise that Microsoft wants to own a smartphone business under its own brand. We will be reporting any unknown details that may surface regarding the transaction, so stay tuned.