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Nokia completes phone unit sale to Microsoft

Mobile technology company Nokia reported on Friday that it had "substantially completed" the sale of its Devices and Services Division to software giant Microsoft.

Nokian konttori
Image: Jorma Vihtonen /Yle

The company revealed that it may have received a better price for the phone unit than initially announced last September.

"As communicated earlier the transaction was subject to purchase price adjustments. The estimate of adjustments made for net working capital and cash earnings was slightly positive for Nokia," the company said in a statement.

Nokia will retain ownership of two mobile phone production facilities following completion of the sale. One plant is located in Chennai, India, currently the subject of a long-running tax wrangle with local authorities, the other a smaller factory in South Korea. The Chennai plant will operate as a contract manufacturing unit for Microsoft pending a resolution of the dispute, while the other facility will eventually be shuttered. It has about 200 employees.

The consummation of the deal will see the transfer of certain members of the Nokia Leadership Team to take up positions at Microsoft. They include former CEO Stephen Elop, Jo Harlow, Juha Putkiranta, Timo Toikkanen, and Chris Weber.

The company said it will reveal additional details of the transaction when it publishes its first-quarter earnings report next Tuesday. With the phone unit offloaded, Nokia is expected to focus on its profitable networks and mapping businesses.

As of next week, 4700 Nokia workers in Finland will become Microsoft employees.

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