Microsoft has announced that they will be closing the $7.2 billion acquisition of the Nokia Devices and Services business on Friday. This announcement comes 8 months after the deal was first revealed.
Brad Smith, Microsoft General Counsel and Executive Vice President, had this to say: ?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. ?
There have been some tweaks made from the initial agreement 8 months ago. Last September 2, 2013, Microsoft announced that they would be acquiring Nokia?s device arm as well as an associated patent deal. This was when Steve Ballmer was still the CEO of Microsoft. During that time, Microsoft mentioned that it would pay approximately $5 billion for ?substantially all? of Nokia?s Devices and Services business and another $2.2 billion to license a broad portfolio of Nokia?s patents.
Brad Smith also mentioned some last minute changes in the acquisition, which include the transfer of 21 Nokia employees who are based in China to Microsoft and the cancellation of the transfer of Nokia?s manufacturing facility in Masan, South Korea, to Microsoft. Microsoft also plans to manage the nokia.com domain as well as Nokia?s social media sites for up to a year for better overall transition.
The deal is mainly centered on making Microsoft competitive against its other rivals namely Apple and Google.
Smith added: ?The completion of this acquisition follows several months of planning and will mark a key step on the journey towards integration. This acquisition will help Microsoft accelerate innovation and market adoption for Windows Phones. In addition, we look forward to introducing the next billion customers to Microsoft services via Nokia mobile phones.?
Windows Phone is currently lagging behind its competitors by a lot and this acquisition hopes to boost both sales and penetration rate of the Windows phone in general. A 2016 forecast has Apple?s share of shipments accounting for 14.7%, Google?s at 77.5% and Windows Phone at a meager 4.8%. This acquisition could change things around for Microsoft if things turn out well.
Photo Source: Microsoft official website