Microsoft finally completes acquisition of Nokia assets

It’s official. Microsoft today welcomed into its fold 25,000 Nokia employees globally but left out the 6,600 at the Finnish company’s factory in Sriperumbudur, near Chennai.

The migration is part of the global acquisition of Nokia’s devices and services business by the US software company. The acquisition was completed on Friday.

“Today, we welcome the Nokia devices and services business to our family. The mobile capabilities and assets they bring will advance our transformation,” said Microsoft CEO Satya Nadella, in a statement.

The total transaction price is expected to be slightly higher than the earlier-announced €5.44 billion, after final adjustments are made based on the verified closing balance sheet, said a Nokia release.

The Sriperumbudur factory will remain with the Finnish telecom major due to the tax liens on Nokia’s assets in India preventing a transfer, says a statement issued by Microsoft. “Amid the uncertainty for our employees in Chennai and because of the planned closure of our facility in Masan, South Korea, Nokia plans to offer a program of support, including financial assistance, which would give our employees the chance to explore opportunities outside Nokia, starting from a sound financial base,” the Finnish company said in a separate press statement.

The two companies agreed to exclude the Masan facility from the scope of the transaction. Nokia will now commence steps to close the facility, which employs approximately 200 people.

The Finnish firm plans to bring elements of its Bridge programme to Chennai and Masan.

In the past, Nokia has opened the initiative to employees affected by changes in other sites, the release said.

Launched in 2011, the Bridge programme helps fund former employees with an entrepreneurial spirit. It helps people who have new ideas but need financial backing.

As part of the transaction, Microsoft will honour all valid customer warranties extended by Nokia for existing devices, beginning Friday. With the Nokia mobile phone business, the US company will target the affordable mobile devices market, a $50-billion annual opportunity.