Microsoft is selling its feature phone business to Foxconn and HMD Global for $350 million.
Corp. on Wednesday announced it reached an agreement to sell the company’s entry-level feature phone assets to FIH Mobile Ltd., a subsidiary of Hon Hai/Foxconn Technology Group, and HMD Global, Oy for $350 million.
As part of the deal, FIH Mobile Ltd. will also acquire Microsoft Mobile Vietnam, the company’s manufacturing facility in Hanoi, according to the statement.
The deal is expected to close in the second half of 2016, subject to regulatory approvals and other closing conditions. 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.
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 to both the companies as part of the deal.
Microsoft adds that it will 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 took over Nokia’s phone business in a $7.2 billion deal in April 2014.