Update: Scroll down to view the full press release regarding Microsoft's acquisition of Nokia Devices and Services business unit.
Microsoft is expected to close its acquisition deal of Nokia's Devices and Services Unit in the coming weeks and when it does, Nokia will be renamed Microsoft Mobile Oy.
According to a leaked Nokia's letter to its business supplier base, the Finnish handset maker stated that Microsoft Mobile Oy is the new legal entity name to use for VAT IDs and issuance of invoices. It also assures suppliers current terms and conditions that they have with the Devices and Services business will not change after the acquisition is completed.
The acquisition, valued at 5.44 billion Euros (US$7.2 billion) will give Microsoft's access to Nokia's patents, and Lumia and Asha brands for use in future devices. Nokia also have the rights to use Microsoft's patents for its HERE services, and will continue to own and manage the Nokia brand (e.g. NSN, HERE, or Advanced Technologies).
Microsoft Officially Welcomes the Nokia Devices and Services Business
Microsoft Corp. announced it has completed its acquisition of the Nokia Devices and Services business. The acquisition has been approved by Nokia shareholders and by governmental regulatory agencies around the world. The completion of the acquisition marks the first step in bringing these two organizations together as one team.
“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.”
Reporting to Nadella is former Nokia President and CEO Stephen Elop, who 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 welcomes personnel with deep industry experience in more than 130 sites across 50 countries worldwide, including several factories that design, develop, manufacture, market, and sell a broad portfolio of innovative smart devices, mobile phones, and services. As part of the transaction, Microsoft will honor all existing Nokia customer warranties for existing devices.
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 will target the affordable mobile devices market, a US$ 50 billion annual opportunity, delivering the first mobile experience to the next billion people while introducing Microsoft services to new customers around the world.
Microsoft will continue to deliver new value and opportunity, and it will work closely with a range of hardware partners, developers, operators, distributors, and retailers, providing platforms, tools, applications, and services that enable them to make exceptional devices. With a deeper understanding of hardware and software working as one, the company will strengthen and grow demand for Windows devices overall.