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Updated: Microsoft To Buy Nokia’s Devices & Services Business, License Patents For A Total Of EUR 5.44 Billion

Nobody's surprised. Microsoft has announced that it will acquire all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services, paying EUR 3.79 billion for 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. The Devices & Services business generated EUR 14.9 billion, or almost 50 percent of Nokia’s net sales for the full year 2012. Nokia's Smart Devices business unit and the Lumia brand and products are also being acquired. Lumia handsets sold 7.4 million units in the second quarter of 2013. Nokia's Mobile Phones business unit, which also being acquired, sold 53.7 million units in the second quarter of 2013. The transaction is expected to close in the first quarter of 2014, however, it's subject to approval by Nokia's shareholders, regulatory approvals and other closing conditions. Update: The acquisition is also subject to approval in India, EU, US, China, Brazil, Russia, Canada and other countries. Microsoft and Nokia have agreed that Nokia will receive USD 750 million termination fee payable by Microsoft in the event that the transaction fails to receive necessary regulatory clearances. Patents: As a  part of the transaction, Nokia will be assigning Microsoft with its long-term patent licensing agreement with Qualcomm and other agreements. Nokia will be retaining its patent portfolio and will grant Microsoft a 10 year license to its patents, in return Microsoft will be granting Nokia reciprocal right to use Microsoft patents for its…

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