Boom! That's was the sound accompanying today's news that Microsoft is buying Nokia. Yes, the subject of many people's fantasies is finally coming true. Nokia, known for being the largest Windows Phone manufacturer, revealed the big news today that it has signed an agreement to sell its Devices & Services business to Microsoft.
The Redmond-based technology giant will pay a gargantuan 5.44 billion euros in cash which is payable upon closing. Interestingly, the deal also includes Nokia's precious patents and mapping services. The deal, therefore, gives Microsoft the right to license Nokia's patents and use its famous HERE mapping services.
3.79 billion euros of the total amount will go to Nokia's Devices & Services division, while 1.65 billion euros will be paid by Microsoft to license Nokia's patents. If it gains the approval of the regulatory board and Nokia’s shareholders, the deal is expected to close in Q1 next year.
Under the agreement, Microsoft will acquire the Mobile Phones and Smart Devices business units (including the Asha series), the team behind the operation, all Nokia Devices & Services production facilities, Devices & Services-related sales and marketing activities, and "related support functions." Over 32,000 Nokia employees are expected to move over to Microsoft during closing.
Don't Miss: iPhone 8: Everything You Need to Know
In an email sent to Microsoft employees today, CEO Steve Ballmer says that the deal is a "bold step into the future." Ballmer also confirms that Nokia CEO, Stephen Elop, will be joining Microsoft to lead the Devices team.