Under the reached upon agreement between the two companies' boards of directors, Microsoft will pay €3.79 billion for the devices and surfaces business. Nokia's patents will fetch an extra €1.65 billion, thus bringing the transaction total to €5.44 billion. The Redmond giant will pay the sum in cash.
The deal will see Nokia's CEO Stephen Elop return to Microsoft, where he will head the Devices division. Risto Siilasmaa will be Nokia's CEO on an interim basis going forward.
Once the deal closes, 32,000 people will transfer to Microsoft. Out of those, 4,700 are in Finland, while 18,300 are directly involved in manufacturing and assembly of products worldwide.
The deal is expected to close in the first quarter of 2014, after it goes through the usual round of regulatory approvals.