Tuesday, 19 November 2013

Nokia Shareholders Approve Microsoft Deal

Nokia’s shareholders have approved the sale of its devices and services unit to Microsoft at an EGM held today in Helsinki, the FT reports.

The transaction is still expected to close in the first quarter of next year, with Nokia in a caretaker role of its own mobile making division until early 2014.

The acquisition of Nokia’s mobile making division was announced at the start of September, with Microsoft agreeing to pay €5.44 billion ($7.2 billion) in cash to acquire ”substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services”.

Nokia has also entered into a mutual licensing agreement (the “Patent License Agreement”) with Microsoft that will become effective upon consummation of the Sale of the D&S Business and a payment to Nokia of EUR 1.55 billion, and, as consideration for Microsoft’s unilateral right to extend the term of the Patent License Agreement to perpetuity, an additional payment of EUR 100 million to Nokia.

Under the Patent License Agreement, Nokia will grant Microsoft a 10-year license to certain of Nokia’s patents and Microsoft will grant Nokia reciprocal rights to certain of Microsoft’s patents for use in Nokia’s HERE business. 

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