Here are quick facts and highlights about the recently announced Nokia Microsoft Deal of Mobile Phone Business and its patents.
Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.
Nokia will retain its other technology units, including Nokia Solutions and Networks (formerly Nokia-Siemens Networks), Nokia Here, its CTO office, and its patent portfolio.
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.
Approximately 32,000 people are expected to transfer to Microsoft, including 4,700 people in Finland and 18,300 employees directly involved in manufacturing, assembly and packaging of products worldwide.
Nokia shareholders are expected to vote on the deal in an extraordinary general meeting on November 19 this year.
Microsoft CEO Steve Ballmer and Nokia CEO Steven Elop
The operations that are planned to be transferred to Microsoft generated an estimated EUR 14.9 billion, or almost 50 percent of Nokia’s net sales for the full year 2012.
Microsoft is acquiring Nokia’s Smart Devices business unit, including the Lumia brand and products. Lumia handsets have won numerous awards and have grown in sales in each of the last three quarters, with sales reaching 7.4 million units in the second quarter of 2013.
Nokia will retain its patent portfolio and will grant Microsoft a 10-year license to its patents at the time of the closing. Microsoft will grant Nokia reciprocal rights to use Microsoft patents in its HERE services
Microsoft also announced that it has selected Finland as the home for a new data center that will serve Microsoft consumers in Europe.
After the deal was announced, Microsoft’s  shares fell down 4.6% to $31.88. The decline erased the stock bump that came after Chief Executive Steve Ballmer recently announced his retirement.
The Nokia deal is the second-biggest acquisition Microsoft has ever done, behind its $8.6 billion purchase of Internet communications service Skype in 2011.
Microsoft CEO Steve Ballmer wrote in an email, “There are no significant plans to shift where work is done in the world as we integrate, so we expect the Nokia teams to stay largely in place, geographically.”