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Nokia has announced that Microsoft has completed the acquisition of its Devices & Services business. The deal means Nokia’s mobile business has become a Microsoft subsidiary called Microsoft Mobile, while Nokia is left with its telecom equipment (NSN), location (HERE), and patent development businesses.
Nokia says the estimate of the adjustments made for net working capital and cash earnings was slightly positive for the company, and that it currently expects the total transaction price to be slightly higher than the earlier-announced transaction price of 5.44 billion euros after the final adjustments are made based on the verified closing balance sheet.
The convertible bonds issued by Nokia to Microsoft following the announcement of the transaction have been redeemed and netted against the deal proceeds by the amount of principal and accrued interest, the company informed.
Microsoft has also announced the closure of the deal. The company has also announced that it will honour all existing Nokia customer warranties for existing devices, beginning April 25, 2014.
Nokia executives Stephen Elop, Jo Harlow, Juha Putkiranta, Timo Toikkanen, and Chris Weber have stepped down from the Nokia Leadership Team and have been transferred to Microsoft at closing, effective April 25, 2014.
Former Nokia President and CEO Stephen Elop, will now serve as executive vice president of the Microsoft Devices Group, overseeing an expanded devices business that includes Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products, and accessories.
Nokia and Microsoft have also made certain adjustments to the scope of the assets originally planned to transfer. Nokia’s manufacturing facilities in Chennai in India and Masan in the Republic of Korea will not be transferred to Microsoft. The company also plans to close its Masan facility in South Korea, which employs approximately 200 people.