• by Laurie Sullivan  @lauriesullivan, September 3, 2013

Microsoft said Monday it will acquire Nokia's Devices & Services business for EUR 3.79 billion, and spend EUR 1.65 billion to license Nokia's patents, as well as license and use its mapping services. Stephen Elop, Jo Harlow, Juha Putkiranta, Timo Toikkanen, and Chris Weber are expected to become Microsoft execs when the transaction closes in Q1 2014.

Speculation puts Elop, a former Microsoft exec, at the helm of the Redmond, Wash. company after CEO Steve Ballmer retires. His experience at Microsoft in office products and then in mobile at Nokia puts him in an ideal spot to take the helm to focus on mobile services.

Microsoft plans to draw from its overseas cash resources to fund the transaction. The two companies said the deal builds on the partnership announced February 2011, and should accelerate Microsoft's share and profit in mobile devices through "faster innovation, increased synergies, and unified branding and marketing."

Nokia's Mobile Phones business with sales of 53.7 million units in the second quarter serves hundreds of millions of customers worldwide.

Microsoft will acquire the Asha brand and will license the Nokia brand for use with current Nokia mobile phone products. Nokia will continue to own and manage the Nokia brand.

As part of the agreement, Nokia will assign Microsoft to its long-term patent licensing agreement with Qualcomm, as well as other licensing agreements.

Nokia will retain its patent portfolio and will grant Microsoft a 10-year license to its patents at the time of the closing. Microsoft will grant Nokia reciprocal rights to use Microsoft patents in its HERE services. Nokia also plans to grant Microsoft an option to extend this mutual patent agreement in indefinitely.