Microsoft has today announced that it has purchased Nokia's entire devices and services division.
In big news for the mobile industry, the company will purchase Nokia's devices and services business, license Nokia’s patents, and license and use Nokia’s mapping services.
Under the terms of the agreement, Microsoft will pay €3.79 billion (AUD$5.57 billion) for the business, along with €1.65 billion (AUD$2.42 billion) to license Nokia’s patents, for a total transaction price of €5.44 billion (AUD$7.99 billion).
Microsoft says it expects to officially close the transaction in the first quarter of 2014, though the purchase is "subject to approval by Nokia’s shareholders, regulatory approvals and other conditions."
Microsoft announced the deal today on its official blog, saying the deal "will accelerate the momentum" of Nokia’s devices and services.
"Today’s agreement will accelerate the momentum of Nokia’s devices and services, bringing the world’s most innovative smartphones to more people, while continuing to connect the next billion people with Nokia’s mobile phone portfolio."
"With the commitment and resources of Microsoft to take Nokia’s devices and services forward, we can now realize the full potential of the Windows ecosystem, providing the most compelling experiences for people at home, at work and everywhere in between."
Nokia's devices and services business includes the mobile phones and smart devices business units as well as design, operations, production facilities, sales and marketing activities, and related support functions.
As part of the purchase, 32,000 Nokia employees are are expected to transfer to Microsoft, including 4,700 in Finland and 18,300 employees worldwide.
Nokia's current CEO Stephen Elop will step down to become Executive VP of Devices & Services. He will officially join Microsoft when the deal closes to "lead an expanded Devices team".