Newscast Media REDMOND—Microsoft Corporation and Nokia Corporation today
announced that the Boards of Directors for both companies have decided to enter
into a transaction whereby Microsoft will purchase substantially all of Nokia’s Devices
& Services business, license Nokia’s patents, and license and use Nokia’s mapping
Under the terms of the agreement, Microsoft will pay EUR 3.79 billion ($5 billion) to
purchase substantially all of Nokia’s Devices & Services business, and EUR 1.65 ($2
billion) billion to license Nokia’s patents, for a total transaction price of EUR 5.44
billion ($7.2 billion) in cash. Microsoft will draw upon its overseas cash resources to
fund the transaction. The transaction is expected to close in the first quarter of
2014, subject to approval by Nokia’s shareholders, regulatory approvals and other
“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 our entire family of devices and services,” said
Steve Ballmer, Microsoft chief executive officer. “In addition to their innovation and
strength in phones at all price points, Nokia brings proven capability and talent in
critical areas such as hardware design and engineering, supply chain and
manufacturing management, and hardware sales, marketing and distribution.”
As part of the transaction, Nokia is assigning to Microsoft its long-term patent
licensing agreement with Qualcomm, as well as other licensing agreements.
Microsoft is also acquiring Nokia’s Mobile Phones business unit, which serves hundreds
of millions of customers worldwide, and had sales of 53.7 million units in the second
quarter of 2013. Microsoft will acquire the Asha brand and will license the Nokia brand
for use with current Nokia mobile phone products. Nokia will continue to own and
manage the Nokia brand.
Newscast Media WASHINGTON—The U.S. Agency for International Development (USAID) and a leading wireless technology provider are expanding their collaboration to use technology to improve economic and social development in emerging markets.
Building on several successful projects in Latin America and Asia, USAID and Qualcomm Inc. signed an agreement that aims to help close the mobile phone gender gap, expand access to broadband, enhance education outcomes, mitigate the negative impacts of climate change, improve information access for front-line health workers, connect small-scale farmers and producers to market data, and enable entrepreneurs to grow their companies by leveraging digital literacy skills.
“USAID is proud to work with Qualcomm. As a global technology leader, they are innovative, nimble and strategic. We share a vision of how to address the challenges in the developing world. Qualcomm has helped us design solutions that make our joint efforts go further,” USAID Deputy Administrator Donald Steinberg said at a ceremony held at USAID.
USAID and Qualcomm have worked together on three successful collaborations:
• Brazil: The Fishing with 3G Nets project has provided small-scale fishermen in Bahia with mobile devices and customized applications to help them practice sustainable fishing, connect with buyers, track sales, access technical assistance, and receive weather and navigation updates.
• El Salvador: USAID and Qualcomm collaborated to develop a wireless mobile and web-based crime system that enables law enforcement in five municipalities to track, report and analyze real-time crime data.
• Philippines: The Wireless Access for Health project established an electronic medical record platform in rural and provincial health clinics that has led to more efficient patient care, having reduced the four to five minutes needed to search paper records to just seconds.
“Given the increasing complexity of the local and global social challenges the world faces, public-private partnerships such as this one with USAID become essential to creating both social and business value,” said Nathan Fletcher, senior director of corporate development at Qualcomm.
Source: State Department