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

(Update :  Steve Ballmer’s email to Microsoft employees on Nokia Devices & Services acquisition includes a link to a presentation about Microsoft’s strategic rationale for the deal announced with Nokia.

From the Microsoft press release:

Microsoft Corporation and Nokia Corporation today announced that the Boards of Directors for both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.

Under the terms of the agreement, Microsoft will pay EUR 3.79 billion to purchase substantially all of Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents, for a total transaction price of EUR 5.44 billion in cash. Microsoft will draw upon its overseas cash resources to fund the transaction. The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia’s shareholders, regulatory approvals and other closing conditions.


There is more on Microsoft’s blog titled “The Next Chapter: An open letter from Steve Ballmer and Stephen Elop