Finland’s Nokia starts a new era after Microsoft deal

Nokia will now focus on its three strong business areas: networks, mapping and location intelligence, and technologies.

Microsoft’s acquisition of Nokia’s devices and services unit for about EUR 5.44 billion has now been completed eight months after the deal was first announced. With the mobile phone business sold off, Nokia will now focus in its three strong businesses: networks, its mapping and location intelligence business called HERE, and technologies.

“With the closing of our transaction with Microsoft, Nokia begins a new era. We are confident in our future. Nokia’s vision is to be a leader in technologies which will be important in a world of billions of intelligent connected devices,” said Risto Siilasmaa, Chairman of the Board at Nokia, in a statement. Nokia’s financial results for the first quarter of 2014 showed a strong balance sheet and solid cash position.

Finland is important to Nokia

In an interview with the business newspaper Taloussanomat, Siilasvuo stated that Finland remains an important centre for Nokia as the company’s headquarters, and also hosts a significant part of Nokia’s product development. “We want to make significant investments in research and product development also in the future but won’t give estimates about the budget for this year or next year,” said Siilasmaa.

Siilasvuo noted that the new Nokia is not tied to any operating system which means that it can sell its technologies to its former competitors as well as Microsoft. Following the completion of the deal with Microsoft, Nokia will now pay dividends to shareholders, buy back some of its own shares and repay loans, according to Siilasvuo.

Sources: Nokia, Taloussanomat