Microsoft acquires Nokia Devices and Services

On 25/04/2014, Microsoft completed its acquisition of Nokia’s Devices and Services business in a transaction valued at approximately €5.44 billion, or about $7.2 billion in cash. The deal transferred Nokia’s mobile phone operations to Microsoft, including the Lumia smartphone lineup, the Asha feature phone range, and Nokia’s broader handset manufacturing and sales infrastructure. The acquisition was intended to strengthen Microsoft’s position in the smartphone market alongside competitors such as Apple and Google. As part of the transaction, around 25,000 employees moved from Nokia to Microsoft. Former Nokia CEO Stephen Elop joined Microsoft as Executive Vice President of the newly created Microsoft Devices Group, which combined Nokia’s handset operations with Microsoft’s existing hardware initiatives. Microsoft also obtained rights to use Nokia branding on certain feature phones for a limited period, while Lumia became the primary Windows Phone hardware brand. Microsoft said the acquisition would allow tighter integration between hardware, Windows Phone software, and Microsoft services such as Office, OneDrive, and Skype. The April 2014 completion followed the original announcement of the deal in September 2013 and marked Microsoft’s largest hardware-focused acquisition at the time.