Microsoft has completed its acquisition of the Nokia Devices and Services business.
The acquisition has been approved by Nokia shareholders and by governmental regulatory agencies around the world. The completion of the acquisition marks the first step in bringing these two organisations together as one team.
“We welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation,” says Microsoft CEO Satya Nadella. “Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world.”
Reporting to Nadella is former Nokia President and CEO Stephen Elop, who will serve as executive vice-president of the Microsoft Devices Group, overseeing an expanded devices business that includes Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products, and accessories.
Microsoft welcomes personnel with deep industry experience in more than 130 sites across 50 countries worldwide, including several factories that design, develop, manufacture, market and sell a broad portfolio of innovative smart devices, mobile phones and services. As part of the transaction, Microsoft will honour all existing Nokia customer warranties for existing devices, beginning 25 April 2014.
Windows Phone is the fastest-growing ecosystem in the smartphone market, and its portfolio of award-winning devices continues to expand. In the fourth quarter of 2013, according to IDC, Windows Phone reinforced its position as a top three smartphone operating system and was the fastest-growing platform among the leading operating systems with 91% year-over-year gain.
Furthermore, with the Nokia mobile phone business, Microsoft will target the affordable mobile devices market, a $50-billion annual opportunity, delivering the first mobile experience to the next 1-billion people, while introducing Microsoft services to new customers around the world.
As with any multinational agreement of this size, scale and complexity, Microsoft and Nokia have made adjustments to the deal throughout the close preparation process. As announced previously, Microsoft will not acquire the factory in Masan, South Korea, and the factory in Chennai, India, will stay with Nokia due to the tax liens on Nokia’s assets in India that prevent transfer.
As a result, Microsoft will welcome approximately 25 000 transferring employees from around the world.
