Microsoft has completed its acquisition of the Nokia devices and services business following approval from Nokia shareholders and global governmental regulatory bodies, the two companies announced recently.
Microsoft announced on Sept. 3 its intention to acquire Nokia for a total of €5.44 billion ($7.5 billion) in cash. The deal consisted of €3.79 billion (approximately $5 billion) along with an agreement to licence Nokia's patents for €1.65 billion ($2.17 billion). As recent adjustments for net working capital and cash earnings were positive for Nokia, the company now expects the final price to be "slightly higher" than €5.44 billion.
Under the acquisition, Nokia's president and CEO, Stephen Elop, will rejoin Microsoft as executive vice president of the Microsoft Devices Group and report to Microsoft CEO Satya Nadella. The group is responsible for Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products and accessories.
"Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation," Nadella said in a prepared statement. "Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world."
At the time of the original acquisition announcement, approximately 32,000 Nokia employees were expected to transfer to Microsoft under the deal. The figure is now approximately 25,000 employees, largely because Microsoft will not acquire the factory in Masan, South Korea, and the factory in Chennai, India, due to asset freeze on the facility by the Indian tax authorities.