Microsoft Set to Acquire Nokia's Devices and Services with EUR5.44bn


Microsoft have finally concluded plans to buy the Giant mobile phone producing company,  Nokia. This plan was made known earlier this month of september, 2013 when the board of directors of both companies entered into an agreement whereby Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, license and use Nokia’s mapping

According to the Microsoft News center earlier this month, the terms of the agreement includes a payment of EUR 3.79 billion to purchase substantially all of Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents, for a total transaction price of EUR 5.44 billion in cash. The transaction is expected to close in the first quarter of 2014 and it is subject to approval by Nokia’s shareholders, regulatory approvals and other closing conditions.

Steve Ballmer, Microsoft chief executive officer also talked about the great things that will abound for both parties when he said “It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services,”

Both parties will definitely benefit from the transaction as confirmed from words of the  Chairman of the Nokia Board of Directors, Risto Siilasmaa who said in quote “For Nokia, this is an important moment of reinvention and from a position of financial strength, we can build our next chapter,”

As a great lover of devices, i think the world of smartphone is about to witness a great turn around when these two teams merge to make mobile devices. With the level  of experience of both parties, it's obvious they would beat the smartphone competition pretty soon. What's your own opinion? Make your contributions through the comment box below this post and let's share our views.

NB: You won't miss out on our future updates if you subscribe with your email address, follow us on twitter or like our facebook page