Microsoft has agreed to a 10 year license arrangement with Nokia to use the Nokia brand on current Mobile Phones products. Nokia will continue to own and maintain the Nokia brand. Upon the closing of the transaction, Nokia would be restricted from licensing the Nokia brand for use in connection with mobile device sales for 30 months and from using the Nokia brand on Nokia’s own mobile devices until December 31, 2015.

Microsoft will become a strategic licensee of the HERE platform, and will separately pay Nokia for a four-year license. It will also make, EUR 1.5 billion of financing available to Nokia in the form of three EUR 500 million tranches of convertible notes that Microsoft would fund from overseas resources.

“It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across entire family of devices and services,” said Steve Ballmer, Microsoft’s chief executive officer.

Nokia CEO Stephen Elop will return to Microsoft, and he will lead an expanded Devices team, which includes all of Microsoft’s current Devices and Studios work.

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