Nokia-Microsoft deal is going to close soon and a leaked Nokia’s letter to its existing Devices and Services business suppliers base reveals two interesting things. First revelation is about renaming of Nokia Oyj to Microsoft Mobile Oy, which will be a wholly-owned Microsoft subsidiary and may be the name of Microsoft’s mobile devices arm. Good thing for suppliers is that current terms and conditions that they have with the Devices and Services business will not change post deal-closure.
Under the terms of the sale, Microsoft will assume all rights, benefits and obligations of the Nokia Devices and Services business, including Nokia’s agreements with suppliers, customers and partners which pertain to the Devices and Services business. Therefore, the purpose of this letter is to update you that the current terms and conditions that you have with the Devices and Services business will not change.
Please note that upon the close of the transaction between Microsoft and Nokia, the name of Nokia Corporation/Nokia Oyj will change to Microsoft Mobile Oy. Microsoft Mobile Oy is the legal entity name that should be used for VAT IDs and for the issuance of invoices.
Another very interesting hint is about Nokia’s bid to keep the supplier base intact for the new Nokia. While NSN to some extent may use such supplier’s services, HERE Maps and Advanced Technology division may need such suppliers only when there is some planning about communication related devices on horizon.
In addition to becoming a supplier for Microsoft Mobile Oy, we appreciate that you might also remain a supplier to the continuing businesses of Nokia (i.e., NSN, HERE or Advanced Technologies) after the close of the transaction between Microsoft and Nokia Devices and Services. Nokia will communicate separately any changes in invoicing methods and addresses before the close of this transaction.
Nokia Smart watch is something which we have heard about coming in Q3 and one recent tip claims that all the future Nokia hardware will come from HERE division. So, this gives a boost to hopes of Nokia thinking about bringing some consumer hardware in future.
Nokia has already announced that 25th April will be the date of Nokia-Microsoft deal-closure. The deal faced hurdles in China due to local vendor’s apprehensions and in India due to the ongoing Tax issues. China approval has been secured now and Nokia will keep making phones in Chennai plant, if it doesn’t get transferred to Microsoft in the deal. In an interesting development, HTC has shown interest in buying Nokia’s Chennai plant, if it is up for sale!
Thanks our own Singhnsk for sending this in. Cheers!!
Actual letter:
Read the full letter to suppliers below,
Dear Supplier,
On September 3, 2013, Nokia Corporation announced its intention to sell substantially all of its Devices and Services Business to Microsoft Corporation. We anticipate the transaction to close during April 2014.
Under the terms of the sale, Microsoft will assume all rights, benefits and obligations of the Nokia Devices and Services business, including Nokia’s agreements with suppliers, customers and partners which pertain to the Devices and Services business. Therefore, the purpose of this letter is to update you that the current terms and conditions that you have with the Devices and Services business will not change.
Please note that upon the close of the transaction between Microsoft and Nokia, the name of Nokia Corporation/Nokia Oyj will change to Microsoft Mobile Oy. Microsoft Mobile Oy is the legal entity name that should be used for VAT IDs and for the issuance of invoices.
NEW BUSINESS INVOICE DETAILS:
New name and registered address replacing Nokia Oyj/Nokia Corporation is:
Microsoft Mobile Oy
Keilaranta 7
02150 ESPOO
Finland
New Bank Accounts: Please note that Microsoft Mobile Oy is going to have new bank accounts, for further information please contact us via AP Portal: https://ap.nokia.com/APPortalExt/Login.aspx (registration required).
There is NO change in the invoice sending method, please continue to send the invoices via electronic channels as before.
For further information on changes (legal address/send to address) after the close of the transaction between Microsoft and the Nokia Devices and Services business, please check our Invoice Address Search tool (IAS): https://ap.nokia.com/APPortalExt/AddressSearch.aspx (No registration required), or contact us via AP Portal: https://ap.nokia.com/APPortalExt/Login.aspx (Registration required).
Please note that the only changes in the Purchase Order (PO) layout after the close of the transaction will be to remove the Nokia Logo and change the legal address, whereas the PO numbering format and sequence will not change.
Continuation of business with Nokia
In addition to becoming a supplier for Microsoft Mobile Oy, we appreciate that you might also remain a supplier to the continuing businesses of Nokia (i.e., NSN, HERE or Advanced Technologies) after the close of the transaction between Microsoft and Nokia Devices and Services. Nokia will communicate separately any changes in invoicing methods and addresses before the close of this transaction.
Best regards,
Nokia Devices and Services Financial Services Purchase to Pay Team
