Microsoft sells Nokia branding rights to HMD Global, Foxconn

 US technology major Microsoft, the owner of Nokia’s mobile device business, has agreed to sell the latter’s branding rights to Finnish firm HMD Global and contract manufacturer Foxconn for $350 million.

“To complete its portfolio of Nokia branding rights, HMD announced on Wednesday that it has conditionally agreed to acquire from Microsoft the rights to use the Nokia brand on feature phones and certain related design rights. The Microsoft transaction is expected to close in H2 of 2016,” Nokia said in a statement.

In a separate agreement, Nokia Technologies will grant HMD Global Oy (HMD), a newly-founded company based in Finland, the exclusive global licence to create Nokia-branded mobile phones and tablets for the next 10 years.

Under the pact, Nokia Technologies will receive royalty payments from HMD for sales of Nokia-branded mobile products, covering both the brand and the intellectual property rights.

Microsoft also said it has signed a pact to sell the company’s entry-level feature phone assets to FIH Mobile, a subsidiary of Hon Hai/Foxconn Technology Group, and HMD Global Oy for $350 million.

As part of the deal, FIH Mobile will acquire Microsoft Mobile Vietnam, the company’s Hanoi manufacturing facility. Foxconn has been a vendor for Nokia and also produced Nokia N1 tablets in a licensing agreement with Nokia Technologies.