Nokia & Microsoft today jointly announced that Microsoft will buy the Nokia’s Phone Business along with Services Division. The deal pegged at Euro 5.44 Billion ($7.17 Billion) is expected to be closed by quarter fourth, 2014 subject to approval by Nokia shareholders, regulatory approvals and other customary closing conditions. After the successful closure of this deal, Nokia will be left with Nokia Services & Networks – a leader in network infrastructure and services, HERE – a leader in mapping and location services and Advanced Technologies – a leader in technology development and licensing.

As a part of this deal, Nokia’s 32000 employees across the globe would be transferred to Microsoft including Nokia’ CEO Stephen Elop who will assume the charge of Devices & Services division of Microsoft as Executive Vice President. However, Nokia’s Chief Technology Office (CTO) organization and patent portfolio will remain within the Nokia Group. Nokia will license (non exclusive) its Patent Portfolio to Microsoft for a period of 10 years at the closure of this deal.

Additionally, Microsoft will become a strategic licensee of the HERE platform, and will separately pay Nokia for a four year license. Also as part of this deal, Microsoft has agreed to a 10 year license whereby Microsoft will be allowed to use the Nokia brand for its forthcoming range of Mobile Phones including Nokia Asha line up and other Series 30 & Series 40 feature phone.

Nokia was once a market leader and was known for its Phone. Then came the smart phone revolution and Nokia failed to capitalize it. You can read Full Press Release on this page.