Microsoft’s earlier announcement that it would be shelling out $7.2 billion deal to buy over Nokia’s devices and services unit sent much of the tech world reeling. The Finnish company’s shareholders were expected to approve the sale, with the deal’s financial benefits thought to outweigh resistance from a minority of investors upset with the sale of a national icon. An official press release from Nokia now shows that the sale of the company’s divisions was approved at an EGM held today. The transaction is estimated to close in the first quarter of 2014, up until which time Nokia will assume a caretaker role. The devices and services part of the acquisition will set Microsoft by $5.11 billion, while the balance is being paid for the patent licensing deal. News of the acquisition had sent Nokia’s shares climbing, and the share prices have continued to increase, a point that Nokia chair Risto Siilasmaa clearly emphasised on at the EGM.
Nokia's shareholders have approved the $7.2 billion deal with Microsoft
The deal will remove around 32,000 staff members from Nokia’s payroll, shifting them to Microsoft instead. The deal, apart from significantly reducing the headcount costs, will pump some much need funds into Nokia’s remaining business. Despite losing a lot of cash, primarily from its loss-making mobile phones division, Nokia announced a surprise profit in its third quarter earnings last month, a step up from a significant loss seen in the second quarter of this year. After the deal, Nokia will be concentrating its efforts on three business divisions, according to the press release. These include NSN, its networking business, HERE and a new business division called Advance Technologies which accounts for the company’s patent portfolio and also the ongoing R&D efforts in areas like sensing, connectivity, materials and web and Cloud technologies.
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