FIH Mobile Ltd. a subsidiary of Hon Hai/Foxconn Technology Group is buying Microsoft’s feature mobile business in Vietnam as part of a big $350 million deal. Microsoft is selling its entry level feature phone assets to two separate buyers, i.e. Finland-based HMD global and FIH Mobile Ltd.
Upon the transaction, Microsoft will be handling over its manufacturing facility in Hanoi, Vietnam to FIH Mobile Ltd. According to the recently negotiated agreement and announcement, over 4,500 employees will also be transferred to the buyers, FIH Mobile Ltd. and HMD Global; however, it is subjected to compliance with the local law.
While Microsoft will be transferring all its feature phone assets and brands, it will still continue to develop Windows 10 Mobile and support Lumia phones such as the Lumia 650, Lumia 950 and Lumia 950 XL, and phones from OEM partners like Acer, Alcatel, HP, Trinity and VAIO.
Microsoft says, “As part of the deal, Microsoft will transfer substantially all of its feature phone assets, including brands, software and services, care network and other assets, customer contracts, and critical supply agreements, subject to compliance with local law. The transaction is expected to close in the second half of 2016, subject to regulatory approvals and other closing conditions”.
The deal will supposedly be closed by the second half of this year, subject to the regulatory approvals and other local lawsuits.
As a part of this deal, HMD Global will be acquiring the exclusive global license of creating mobile phones and tablets under the Nokia brand for next ten years.
Nokia press release, ““Under the agreement, Nokia Technologies will receive royalty payments from HMD for sales of Nokia-branded mobile products, covering both brand and intellectual property rights,” the document reads”.
The deal further states that, Microsoft sells the rights of using Nokia brand on their feature phones and HMD will now onward be providing an independent home for the complete range of Nokia brand phones, tablets and Smartphones.
- Tags: Corporate