Technology giant Microsoft has announced that it has completed a deal to purchase mobile phone company Nokia for a fee of £4.5 billion.
This acquisition has been some time in the making, as an agreement between the two firms was expected to have been completed towards the end of 2013; however, it encountered a series of delays, with regulatory approvals being the cause of the hold-ups.
It has been confirmed that the deal will see the end of Nokia’s production of mobile phones, as Microsoft has other plans for the business. This new path for the Finnish company will see a shift in its reputation management, with a focus on mapping services, networks, technology development and licenses.
Satya Nadella, Chief Executive of Microsoft, said in a statement:
“Today we welcome the Nokia devices and services business to our family.”
It continued to outline the deal and how it would help Microsoft develop, stating that:
“[…] the mobile capabilities and assets they bring will advance our transformation.”
It is understood that two of Nokia’s plants will not feature in the deal. This includes a manufacturing unit based in Chennai, India, which is set to be the subject of an asset freeze by tax authorities there. The other is South Korea’s Masan plant, which has plans to be shut down.
Stephen Elop, former Chief Executive of Nokia, is now Microsoft’s devices group Executive Vice President and will take charge of Lumia tablets and smartphones, as well as overseeing operations involving Nokia phones, Microsoft Surface, and all Xbox hardware.