Microsoft sells Nokia Assets – HMD to bring the brand back to market

HMD has been founded to provide a focused, independent home for a full range of Nokia-branded mobile phones and tablets. For this purpose, HMD has signed a strategic licensing agreement with Nokia Technologies, the advanced technology and licensing unit of Nokia Corporation, giving HMD sole use of the Nokia brand on mobile phones and tablets worldwide for the next decade, and cellular standard essential patent licenses. HMD intends to invest over USD 500 million over the next three years to support the global marketing of Nokia-branded mobile phones and tablets, funded via its investors and profits from the acquired feature phone business. To complete its portfolio of Nokia branding rights, HMD has conditionally agreed to acquire from Microsoft the rights to use the "Nokia" trademark on feature phones until 2024, and design rights relating to Microsoft's Feature Phone Business. This transaction is expected to close in H2 2016. Together, these agreements will make HMD the sole global licensee for all types of Nokia-branded mobile phones and tablets. The remainder of Microsoft's feature phone business assets, including its Hanoi manufacturing facility, and global distribution, fulfilment and supply chain networks, will conditionally be acquired by FIH Mobile Limited, a subsidiary of Hon Hai Precision Industries (trading as Foxconn Technology Group). HMD has signed an agreement with FIH and Nokia Technologies to establish, on closing of the Microsoft transactions, a collaboration framework to support the building of a global business for Nokia-branded mobile phones and tablets. This agreement will give HMD full operational control over sales, marketing and distribution of its Nokia-branded devices, with exclusive access to the pre-eminent global sales and distribution network to be acquired by FIH from Microsoft, as well as access to FIH's device manufacturing and engineering capabilities, and its growing suite of proprietary mobile technologies and components. HMD is entering the global handset market at a time when consumers demand their mobile devices be part of a strong ecosystem that brings a compelling user experience delivered at a competitive price. HMD plans for its future Nokia-branded smartphones and tablets to run on the Android operating system, uniting one of the world's iconic mobile brands with the leading mobile software and app development community. HMD will be managed by an experienced group of mobile industry leaders. Arto Nummela, who previously held senior positions with Nokia and is currently the head of Microsoft's Mobile Devices business for Greater Asia, Middle East and Africa as well as Microsoft's global Feature Phones business, will serve as CEO on closing of the Microsoft transaction. HMD's President on closing will be Florian Seiche, currently Senior Vice President for Europe Sales and Marketing at Microsoft Mobile, who previously held leadership roles at Nokia, HTC and other global brands.