Microsoft Buys Nokia For 3.79 Billion Euros

Microsoft announced the purchase of Nokia for 5.44 billion euros. The company made a joint statement on Tuesday morning.

Microsoft will pay for the key “telephone” line (“Devices & services”) of the Finnish manufacturer’s 3.79 billion euros and for patents and licenses – f 1.65 billion euros.

“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,” said Steve Ballmer, Microsoft chief executive officer. “In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution.”

“We are excited and honored to be bringing Nokia’s incredible people, technologies and assets into our Microsoft family. Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we anticipate a smooth transition and great execution,” Ballmer said. “With ongoing share growth and the synergies across marketing, branding and advertising, we expect this acquisition to be accretive to our adjusted earnings per share starting in FY15, and we see significant long-term revenue and profit opportunities for our shareholders.”

The current head of Nokia, Stephen Elop will return to Microsoft – he led Nokia since September 2010. From now on, the head of Nokia’s transition period appointed Risto Siilasmaa, Chairman of the Directors Board of Nokia.

The Finnish company will retain direction HERE (maps and navigation) and Nokia Siemens Networks (telecommunications equipment).

The companies plan to close the transaction in the first quarter of 2014, but not before purchase approved by shareholders of Nokia and regulatory agencies.