Microsoft Corporation (NASDAQ:MSFT) confirmed today that it has officially closed the acquisition of Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s handset business. The purchase was originally announced in September 2013. Under the terms of the deal, the Finnish company will license patents to Microsoft. However, the software giant had to shell out a bit more than the previously expected €5.44 billion for the deal. The transaction had been expected to close in the first quarter of 2014, but it was delayed.
Microsoft won’t get Nokia’s Indian and Korean plants
Neither companies revealed the final price tag. But Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) said it will provide more details of the transaction in its first quarter results on Wednesday, April 29. Microsoft Corporation (NASDAQ:MSFT) said Nokia’s mobile business has been renamed Microsoft Mobile Oy. There has been uncertainty around whether the Nokia and Lumia names will still appear on devices. The Redmond-based company said any specific branding decisions will be made down the road.
The final price of the transaction went slightly higher after the final adjustments, based on the verified closing balance sheet. Microsoft Corporation (NASDAQ:MSFT) and Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) made some adjustments to the assets that were originally planned to transfer. The Finnish company said that its manufacturing facility in Chennai, India is not a part of the deal. Nokia faces tax disputes with authorities there. Moreover, Microsoft will also not get Nokia’s Masan, South Korean plant.
Nokia to manufacture devices for Microsoft
Effective April 25, Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) executives Stephen Elop, Juha Putkiranta, Jo Harlow, Chris Weber and Timo Toikkanen will be transferred to Microsoft Corporation (NASDAQ:MSFT). Stephen Elop will now serve as the executive vice president of the Redmond-based company’s Devices business and will report to Satya Nadella. Meanwhile, Nokia will operate as a telecom networking company. It will continue to license its Here maps. Nokia will manufacture mobile devices for the U.S. software giant.
Microsoft Corporation (NASDAQ:MSFT) shares soared 2.16% in pre-market trading Friday to $40.72.