BANGALORE: Nokia has finally handed over all of its Devices and Services to Microsoft. The deal, earlier estimated to be around 5.4 billion Euros, turned slightly higher as the net cash earnings of the company along with the net investment capital is more and the final changes were made after verifying the closing balance sheets. Microsoft’s deal to Nokia also includes licensing the patents, reports The Times of India.
The company also announced that all the customer warranties on the existing models will continue from April 25th, 2014. As told earlier, the Nokia’s executives will step down from the Finnish company’s leadership team and will be transferred to Microsoft. Further details on the deal are to be announced in the first quarter of 2014.
“Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation," said Satya Nadella, the Microsoft CEO. "Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world." he added.
Apparently, Nokia’s Chennai based plant in India and Masan plant in South Korea is excluded out of the deal. The company plans to close down its Masan plant which currently employs around 200 people The Chennai plant had to be eliminated out of the deal due to the company’s tax liabilities in India.
"In India, our manufacturing facility is subject to an asset freeze by the Indian tax authorities as a result of ongoing tax proceedings. Consequently, the facility remains part of Nokia following the closing of the transaction. Nokia and Microsoft have entered into a service agreement whereby Nokia would produce mobile devices for Microsoft," said Nokia in a press statement.
Nokia has also said that it will offer financial support and all the assistance needed for its employees to look for job opportunities and supposedly the company has also offered voluntary retirements for some of its employees at the Chennai plant.
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