Microsoft To Acquire Nokia in $7.5 Billion Deal on April 25

Apr 21, 2014 04:16 PM EDT | Jordan Ecarma


After navigating regulatory approvals, Microsoft expects to complete the $7.5 billion acquisition of Nokia on April 25, Reuters reported.

The tech companies had agreed to the deal in September, but the closure was delayed due to pending approvals. The billion-dollar acquisition of Espoo, Finland-based Nokia is an important step for Microsoft as it looks to grow its Windows mobile phone platform.

As described on Nokia's website, the deal was for "an agreement with Microsoft whereby Microsoft would purchase substantially all of Nokia's Devices & Services business."

"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," Brad Smith, Microsoft general counsel and executive vice president for corporate and legal affairs, said in an official blog post.

Nokia, which has been working with Microsoft to offer a contender against the Apple iOS and Google Android platforms, will be renamed Microsoft Mobile, according to a leaked letter.

During the last six months or so, the acquisition deal went through a few tweaks. In one change, the companies have agreed that Microsoft will manage the Nokia site and Nokia's social media for up to a year, Smith said in the blog post.

While the original agreement draft kept all Nokia employees working at Nokia, the deal has been adjusted so 21 China-based Nokia employees who work on smartphones will move over to Microsoft.

The American tech company will also not acquire Nokia's Korean manufacturing plant even though it was included in the original deal.

According to The Verge, Microsoft and Nokia had to wait to complete the deal when antitrust officials in Asia stalled the process last month.

Microsoft, which recently came under the leadership of new CEO Satya Nadella, is now looking to design its own smartphones in the hopes of giving Android and iOS a run for their money. 

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