Microsoft has today announced that it is selling the feature phone business it acquired from Nokia to FIH Mobile, a subsidiary of Foxconn, and HMD Global for $350 million. The deal also includes Microsoft Mobile Vietnam, a manufacturing facility in Hanoi, Vietnam.
The acquisition gives Foxconn the right to use the Nokia name on future feature phones, as well as the Nokia software. It also includes any critical supply agreements, customer contracts, the care network, and other assets, Microsoft confirmed in its statement.
When the deal is closed — which is expected to happen in the second half of 2016, subject to regulatory approvals and “other closing conditions” — around 4,500 employees will have the opportunity to join FIH Mobile or HMD Global.
And in case you were worried and the smartphone division, Microsoft confirms that it will continue to develop Windows 10 Mobile and support Lumia devices, as well as third-party devices from partners like Acer, Alcatel, HP, and others.
Microsoft officially acquired Nokia’s hardware businesses in April 2014 for $7.2 billion, and it has since released Lumia smartphones of its own — like the Lumia 950 series. However, feature phones are far from Microsoft’s focus right now, so this sale makes a lot of sense.