Nokia said on Monday it expects the sale of its handset business to Microsoft to be finalised by this Friday, April 25, as it had received all the required regulatory approvals.
The closure of the 5.4 billion euro ($7.5 billion) deal, which was agreed in September, had been delayed due to pending approvals, but earlier this month the companies won a crucial nod from Chinese regulators.
Last year, Microsoft had announced that it has purchased substantially all of Nokia’s devices and services business, and license and use of the company’s patents and mapping services. The deal was expected to close in the Q1 of 2014 and would be subject to approval by Nokia’s shareholders, regulatory approvals and other closing conditions.
Under the terms of the agreement, Microsoft will pay 3.79 billion euros to purchase the Finnish company’s devices and services business, and 1.65 billion euros to license Nokia’s patents, for a total transaction price of 5.44 billion euro (approx $7.2 billion) in cash. That amount is significantly less than what the Redmond company paid for Skype in 2011. Microsoft will draw upon its overseas cash resources to fund the transaction, the company had said.
Microsoft is also believed to rename the handset division of Nokia to Microsoft Mobile once Microsoft’s Nokia takeover is complete.