Microsoft acquires Nokia for $7.1 billion
Microsoft announced this week that it will acquire Nokia's handset and services business for approximately $7.1 billion. The technology acquisition includes $5 billion to purchase Nokia's cellphone business, while $2.1 billion will go toward its patent portfolio.
According to a Nokia press release, the transaction will help the company improve its share and profit in mobile devices. The move is expected to help Nokia create a more stable financial position for itself and provide a better base for future investments.
Microsoft CEO Steve Ballmer said in the announcement that the acquisition is a "bold step into the future" and is good for shareholders, consumers and employees in each company.
Nokia interim CEO Risto Siilasmaa said that the M&A activity is a great opportunity for his company to reinvent itself, and to do so from a position of financial strength.
"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," Siilasmaa said. "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."
In an interview with the New York Times, Siilasmaa explained that he knows the technology acquisition is a logical one for Nokia and the right cause of action, but it is still "emotionally complicated."
No business owner wants emotions to hinder an ideal business opportunity, which is why having a strong team behind you can help all M&A activity. Along with accountants and lawyers, working with investment banking firms can also help you find the best deal if one can be created.