- Tata Group To End All Business Dealings With Cyrus Mistry's Family Firms
- GJM supremo discharged in Madan Tamang murder case
- Trinamool Congress leading in municipal polls
- CoA tells Supreme Court: Sack BCCI's top three office-bearers
- Chandigarh: 10-year-old rape survivor denied abortion by Supreme Court gives birth to a girl
- Gujarat police officers Amin and Barot quit
- After controversy, DD denies blacking out Tripura CM, says speech was aired
- Sierra Leone mourns 100 children among dead in massive flooding
Nokia handsets to be renamed Microsoft Mobile
MUMBAI: Finnish mobile manufacturer Nokia and software giant Microsoft has announced that they will close their $7.2 billion deal on 25 April. Post the deal, Nokia’s handset business will be renamed as Microsoft Mobile.
The announcement comes after Nokia sent a letter to its suppliers informing them that its handset division will now be known as Microsoft Mobile. The transaction is now subject only to certain customary closing conditions.
A statement issued by Microsoft read, “Today we are excited to share that we have completed the steps necessary to finalize Microsoft’s acquisition of the Nokia Devices and Services business. The transaction will be completed this Friday, April 25, when we’ll officially welcome the Nokia Devices and Services business as part of the Microsoft family.”
In a blog post, Microsoft general counsel and EVP legal and corporate affairs Brad Smith said, “The completion of this acquisition follows several months of planning and will mark a key step on the journey towards integration.”
The acquisition is stated to help Microsoft accelerate innovation and market adoption for Windows Phones. In addition, they will also woo additional customers to Microsoft services via Nokia mobile phones.
Microsoft’s mobile division will remain in Finland as a wholly-owned subsidiary of Microsoft, while the official business address will be changed from Nokai HQ on Keilalahdentie to Keilaranta in Espoo.
As per reports, a leaked letter shows Nokia stating, “Under the terms of the sale, Microsoft will assume all rights, benefits and obligations of the Nokia Devices and Services business, including Nokia’s agreements with suppliers, customers and partners which pertain to the Devices and Services business. Therefore, the purpose of this letter is to update you that the current terms and conditions that you have with the Devices and Services business will not change.”
As per the deal, Microsoft will manage the nokia.com domain and social media sites for the benefit of both companies and their customers for a year.
The original deal had all employees in Nokia’s chief technology office continuing with Nokia. Microsoft has adjusted the agreement so that the 21 employees in China working on mobile phones will join Microsoft and continue their work. The original agreement also had Microsoft acquiring Nokia’s Korean manufacturing facility. The agreement was adjusted and Microsoft will not acquire the facility.
“As with any multinational agreement of this size, scale and complexity, our two companies have made adjustments to the original deal throughout the close preparation process. We’ve entered into numerous agreements to address items ranging from manufacturing to IT,” the statement mentioned.
Last September, Nokia announced its decision to sell its handset business to Microsoft in a $7.2 billion deal.