Nokia completes the sale of its devices and services business to Microsoft

NokiaDayOne-ImageThe deal between Microsoft and Nokia about the sale of the latter’s devices and services division has finally closed today, with some minor adjustments to the terms and a slightly higher value for the Finnish business.

It’s announced that the revised deal is now excluding the transfer of Nokia’s manufacturing facilities in Chennai in India and Masan in the Republic of Korea to Microsoft. Indian authorities have frozen the assets of Nokia in the country due to ongoing tax proceedings, which was also the reason of the delay in closing the global deal between two giants. The transaction also includes an agreement to license some patents to Microsoft.

The $7.2 billion deal originally that was announced early September last year has been expected to finalize in the first quarter. Since then, the companies had to wait for the approvals from regulatory authorities in some major markets.

According to a press release by Nokia, the other troubled facility of the company in Masan, South Korea is excluded from the original deal because Nokia has decided to start the process of closing the facility and laying off its 200 workers. The company said they will offer a program of support, including financial assistance, to the employees of both factories.

As earlier announced, adjustments are also made to the financial terms of the agreement slightly to the advantage of the Finnish company. The press release said that “they expect the total transaction price to be higher than the earlier-announced transaction price of EUR 5.44 billion after the final adjustments are made based on the verified closing balance sheet.”

Nokia’s leadership team, including CEO Stephen Elop, have now transferred to Microsoft effective today.

“Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation,” said Microsoft CEO Satya Nadella. “Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world.”

Stephen Elop 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.

As part of the transaction, Microsoft said it will honor all existing Nokia customer warranties for existing devices.

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