Microsoft Sells Off Feature Phone Assets for $350m

US-based computer company Microsoft Corp. (NASDAQ: MSFT) has reached an agreement to sell its entry-level feature phone assets to China-based investment holding company FIH Mobile Ltd., a subsidiary of Taiwan-based electronic manufacturing services company Hon Hai/Foxconn Technology Group, and US-, UK-, and China-based HMD Global, Oy for USD 350m, the company said.
As part of the deal, FIH Mobile Ltd. will also acquire Microsoft Mobile Vietnam, the company’s Hanoi, Vietnam, manufacturing facility.
Upon close of this deal, approximately 4,500 employees will transfer to, or have the opportunity to join, FIH Mobile Ltd. or HMD Global, Oy, subject to compliance with local law.
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.
Microsoft provides platform and productivity software for the mobile-first, cloud-first world.