Microsoft Corp. has announced that its acquisition of the Nokia Devices and Services business is now complete. The acquisition has been approved by Nokia shareholders and by governmental regulatory agencies around the world.
“Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation,” said Microsoft CEO Satya Nadella. “Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world.”
Former Nokia President and CEO Stephen Elop now reports to Nadella. He will serve as executive vice president of the Microsoft Devices Group, overseeing an expanded devices business that includes Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products and accessories. Microsoft have confirmed that they will honor all existing Nokia customer warranties for existing devices.
As with any multinational agreement of this size, scale and complexity, Microsoft and Nokia have made adjustments to the deal throughout the close preparation process. As announced previously, Microsoft will not acquire the factory in Masan, South Korea, and the factory in Chennai, India will stay with Nokia due to the tax liens on Nokia’s assets in India that prevent transfer. As a result, Microsoft will welcome approximately 25,000 transferring employees from around the world.
Windows Phone is the fastest-growing ecosystem in the smartphone market, and its portfolio of award-winning devices continues to expand. In the fourth quarter of 2013, according to IDC, Windows Phone reinforced its position as a top three smartphone operating system and was the fastest-growing platform among the leading operating systems with 91 percent year-over-year gain. Furthermore, with the Nokia mobile phone business, Microsoft is targetting the affordable mobile devices market, estimated as a $50 billion annual opportunity, delivering the first mobile experience to the next billion people while introducing Microsoft services to new customers around the world.