Microsoft Buy Nokia’s Devices And Services Business And License Its Patents in in 5.44 billion euros

In a surprise move, Microsoft announced Monday evening 3 September 2013 that it has inked a deal with Nokia to acquire “substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.”

The total purchase price of 5.44 billion euros, 3.79 billion relates to the purchase of Nokia’s Devices & Services business, and 1.65 billion relates to the mutual patent agreement and future option.

The transaction announced Tuesday is expected to be completed in the first quarter of 2014, pending approval by Nokia shareholders and regulatory authorities.Nokia will grant Microsoft a 10-year non-exclusive license to its patents and will itself focus on network infrastructure and services, which it called “the best path forward for Nokia and its shareholders.”Some 32,000 Nokia employees are expected to transfer to Microsoft, including approximately 4,700 people in Finland.

Sales of Nokia's Lumia series have helped the market share of Windows Phones in the global smartphone market climb to 3.3 percent, according to consultancy Gartner, overtaking ailing BlackBerry Ltd for the first time this year. Still, Google Inc's Android and Apple's iOS system make up 90 percent of the market.

About Microsoft :

Microsoft, founded in 1975 by Bill Gates and Paul Allen, is a veteran software company, best known for its Microsoft Windows operating system and the Microsoft Office suite of productivity software.

Starting in 1980 Microsoft formed a partnership with IBM allowing Microsoft to sell its software package with the computers IBM manufactured.

Microsoft is widely used by professionals worldwide and largely dominates the American corporate market.

Additionally, the company has ventured into hardware with consumer products such as the Zune and Xbox.

Microsoft has made a presence on the Web with the MSN internet portal and Bing Search Engine.

About Nokia

NOKIA is a Finnish multinational communications corporation.Nokia, founded in 1865 It is primarily engaged in the manufacturing of mobile devices and in converging Internet and communications industries.

They make a wide range of mobile devices with services and software that enable people to experience music, navigation, video, television, imaging, games, business mobility and more.

Nokia is the owner of Symbian operation system and partially owns MeeGo operating system.