Microsoft has agreed a deal to buy Nokia‘s mobile phone business for 5.4bn euros ($7.2bn). Nokia will also license its patents and mapping services to Microsoft. Nokia shares jumped 45% on news of the deal. The deal is set to be completed in early 2014, and about 32,000 Nokia employees will transfer to Microsoft.
The transaction is subject to approval by Nokia shareholders and regulators.
Nokia partnered in 2011 with Microsoft and uses Microsoft’s Windows software to run its mobile phones.
Finland’s Nokia, once the undisputed leader in mobile phones, has been struggling to respond to the challenge from smartphone makers such as Apple and Samsung. Nokia board chairman Risto Siilasmaa would take over CEO duties while the Finnish firm looked for a new CEO.
Microsoft has also agreed a 10-year licensing arrangement with Nokia to use the Nokia brand on current mobile phone products.