Microsoft has announced and Nokia just because they have reached an agreement to enter into a transaction whereby the Redmond – based company will acquire the Finnish company & business services.
Under the agreement, Microsoft will pay €3.79 billion ($5 billion) for Nokia mobile devices and smart services department, as well as€1.65 billion ($2.17 billion), compared patents maker of mobile phones.
Terms of the deal include a total amount of €5.44 billion ($7.17 billion) in cash that Microsoft has to pay in order to successfully close the transaction in early 2014.
Nokia also confirmed that a patent license agreement in the long term with Qualcomm will allocate to Microsoft.
According to the agreement, the company will retain Finnish patent portfolio, and will continue to own and manage the Nokia brand, but will give Microsoft a license for a period of 10 years for its patents in closing time. The mutual agreement can be extended if desired Microsoft patent agreement after the initial 10 years.
Approved by both companies for the exchange of rights to use patents Microsoft and Nokia in the services. Microsoft also said it would pay separately for the Finnish phone maker to obtain a license for a period of four years in order to become a “licensed strategic platform here.”
Although Nokia and Windows Phone gained a very large share of the market in recent times, the Finnish company still need to finance in order to maintain a division of mobile services.
This is probably the main reason Microsoft decided to make it available immediately for Nokia €1500000000 (1.97 billion dollars) in the form of three €500 million ($660 million ) segments of the convertible bonds.
As part of the transaction, we will Stephen Elop, Joe, Harlow, Juha Putkiranta, Timo, and Chris Webber was transferred to Microsoft as soon as you close the deal. Chief Executive Officer of Nokia will be the new temporary Risto Siilasmaa, former CEO of F – Secure Corporation and the current head of Nokia.
Last but not least, Microsoft will open a new data center in Finland, which is designed for the Microsoft customer service in Europe. Will be announced further details of the deal on 19 November, when Nokia plans to convene a meeting of the Extraordinary General Assembly.