Microsoft is selling its feature phone assets to a subsidiary of Taiwanese firm Foxconn Technology and newly-established firm HMD Global for $350 million, the company announced on Wednesday, in a move that will see Nokia devices return to the market.
The deal will see Microsoft transfer all of its feature phone assets, including brands, software and services, customer contracts and supply agreements to Foxconn subsidiary FIH Mobile to HMD Global. Around 4,500 employees will also transfer over to or have the opportunity to join either company.
FIH Mobile Taiwanese firm will also acquire Microsoft Mobile Vietnam – the company's Hanoi-based manufacturing facility.
Microsoft will continue to develop its Windows 10 Mobile operating system and support its Lumia brand of phones and devices from partners such as Acer and Alcatel that run Windows phones.
The transaction is expected to close in the second half of 2016 subject to regulatory approvals and other closing conditions, Microsoft said.