Microsoft is going to acquire Nokia’s devices & services business, license Nokia’s patents and mapping services

Rumors started few months ago in cyber world about acquiring of Nokia Corporation by Microsoft shown some relevance today. Microsoft legally announced about the Nokia’s devices & services business acquisition along with license Nokia’s patents and mapping services.

Because of this acquisition now onwards trademarks “Asha” and “Lumia” will be not more seen under Nokia’s property rather they will be go in Microsoft’s bag. Only the “Nokia” trademark will remain there itself. Redmond giant will now be authorized trademark owner for 10-year as per license agreement.

Microsoft and Nokia acquisition

Boards of Directors of both Microsoft and Nokia came to an license agreement which states that Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services. This deal has been finalized for a total of EUR 5.44 billion in cash which is divided as EUR 3.79 billion for Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents.

Steve Ballmer on this deal:

“It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services.”

Already Microsoft has acquired Skype

 and now it’s time for Nokia. This deal will also made a big decision for Steven Elop, Nokia CEO and President, who will now go back to Microsoft for leading an expanded Devices team. Now we can also assume about his involvement in the race of Microsoft CEO. Just after this agreement disclosing Nokia’s share are going up in share market. Soon we will see more changes in the smartphone world too.

Have a look at shared history of innovation of both Microsoft and Nokia. Here is an interesting Infographic by Nokia Corporation as showing the innovation of both companies year by year.

Microsoft and Nokia History
Terms of Agreement can be read at Microsoft Press News.