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Microsoft completes Nokia acquisition

Cliff Saran

Microsoft has completed the acquisition of Nokia Devices and Services business. The deal will boost the company's Windows Phone business.

"The mobile capabilities and assets [Nokia] brings will advance our transformation," said Microsoft CEO Satya Nadella. "Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world."

Nokia Lumia.jpg

Former Nokia president and CEO Stephen Elop, who was in the running for the top job at Microsoft, will report to Nadella as executive vice-president of the Microsoft Devices Group.

Elop will be responsible for Lumia smartphones and tablet business, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products and accessories.

Brad Smith, general counsel and executive vice-president, legal and corporate affairs at Microsoft, said: "The completion of this acquisition follows several months of planning and will mark a key step on the journey towards integration. This acquisition will help Microsoft accelerate innovation and market adoption for Windows Phones. In addition, we look forward to introducing the next billion customers to Microsoft services via Nokia mobile phones."

Microsoft said Nokia’s feature phone (non-smartphone) business, will target the affordable mobile devices market. Microsoft said this represents a $50bn annual opportunity to deliver the first mobile experience to the next billion people, while introducing Microsoft services to new customers around the world.

Microsoft said it would not acquire Nokia’s factory in Masan, South Korea, and the factory in Chennai, India, will stay with Nokia. It will take on 25,000 Nokia employees from around the world.

The acquisition will fuel Microsoft’s device strategy. When Computer Weekly covered the announcement of the $7.2bn deal in September 2013, Annette Zimmermann, principal research analyst at Gartner, predicts that BlackBerry would be the company left most vulnerable from the acquisition.  At the time she said: "Now Microsoft has a reason to be aggressive in the enterprise. This is pretty much it for BlackBerry."


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