In a surprising event Microsoft has announced that it has inked a deal with Nokia to acquire its devices and services business. In recent years Nokia has been struggling to compete with its rivals Apple, Samsung and Google in Smartphone space. Nokia, which had 40 percent of the handset market in 2007, now has just 15 percent, and only 3 percent in smartphones.
With its handset division sold, Nokia will now concentrate on its networking equipment unit, navigation business and technology patents.
A full infographic of Nokia’s Timeline
Microsoft’s press release reads
We are excited and honored to be bringing Nokia’s incredible people, technologies and assets into our Microsoft family. Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we anticipate a smooth transition and great execution,” Ballmer said. “With ongoing share growth and the synergies across marketing, branding and advertising, we expect this acquisition to be accretive to our adjusted earnings per share starting in FY15, and we see significant long-term revenue and profit opportunities for our shareholders.
For Nokia, this is an important moment of reinvention and from a position of financial strength, we can build our next chapter,” said Risto Siilasmaa, Chairman of the Nokia Board of Directors and, following today’s announcement, Nokia Interim CEO. “After a thorough assessment of how to maximize shareholder value, including consideration of a variety of alternatives, we believe this transaction is the best path forward for Nokia and its shareholders. Additionally, the deal offers future opportunities for many Nokia employees as part of a company with the strategy, financial resources and determination to succeed in the mobile space [Read Complete Microsoft Press Release here]