#Nokia’s Full Press Release On #Selling #Devices & #Services Business To #Microsoft ESPOO, Finland – Nokia Corporation today announced that it has signed an agreement to enter into a transaction whereby Nokia will sell substantially all of its Devices & Services business and #licence its patents to Microsoft for EUR 5.44 billion in cash, payable at closing. Nokia expects to book a gain on sale of approximately EUR 3.2 billion, and expects the transaction to be significantly accretive to earnings. ► Following the transaction, Nokia plans to #focus on its #three established businesses, each of which is a leader in enabling mobility in its respective market segment: #NSN, a leader in network infrastructure and services; #HERE, a leader in mapping and location services; and #Advanced #Technologies, a leader in technology development and licensing. ► At closing, this transaction is expected to strengthen Nokia’s financial position and provide a solid basis for future investment in these three businesses. ► Subject to the closing of the transaction, Microsoft will acquire substantially all of Nokia’s Devices & Services business, including the #Mobile #Phones and #Smart #Devices business units as well as an #industry-leading #design #team, operations including all Nokia Devices & Services production facilities, Devices & Services-related sales and #marketing #activities, and related support functions. ► At closing, approximately 32,000 people are expected to transfer to Microsoft, including approximately 4,700 people in Finland. Nokia’s CTO (Chief Technology Office) organization and #patent #portfolio will remain within the Nokia Group. ► The operations that are planned to be transferred to Microsoft generated an estimated EUR 14.9 billion, or almost 50%, of Nokia’s net sales for the full year 2012. As part of the transaction, Nokia will #grant Microsoft a #10year non-exclusive license to its patents as of the time of the closing, and Microsoft will grant Nokia reciprocal rights related to HERE services. In addition, Nokia will grant Microsoft an option to extend this mutual patent agreement to perpetuity. Of the total purchase price of EUR 5.44 billion, EUR 3.79 billion relates to the purchase of substantially all of the Devices & Services business, and EUR 1.65 billion relates to the mutual patent agreement and future option. Additionally, Microsoft will become a strategic licensee of the HERE platform, and will separately pay Nokia for a four year license. This revenue stream is expected to substantially replace the revenue stream HERE is currently receiving from Nokia’s Devices & Services business internally. If the transaction closes Microsoft is expected to become one of the top three customers of HERE. Microsoft has agreed to a 10 year license arrangement with Nokia to use the #Nokia #brand on current Mobile Phones products. Nokia will continue to #own and #maintain the Nokia brand. Under the terms of the transaction, Microsoft has agreed to a 10 year license arrangement with Nokia to use the Nokia brand on current and subsequently developed products based on the Series 30 and Series 40 operating systems. Upon the closing of the transaction,Nokia would be restricted from licensing the Nokia brand for use in connection with mobile device sales for 30 months and from using the Nokia brand on Nokia’s own mobile devices until December 31, 2015. Following the transaction, Nokia plans to focus on its three established businesses, each of which is a leader in enabling mobility in its respective market segment: NSN, a leader in network infrastructure and services; HERE, a leader in mapping and location services; and Advanced Technologies, a leader in technology development and licensing. Via: wmpoweruser/nokias-full-press-release-on-selling-devices-services-business-to-microsoft - Tech Bites
Posted on: Tue, 03 Sep 2013 09:43:33 +0000
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