Microsoft is buying Nokia's devices unit

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REDMOND — Microsoft is buying Nokia's devices and services business, and getting access to the company's patents, for $7.2 billion, the companies announced Monday.Microsoft will pay $5 billion for the Nokia mobile phone unit, including its line of Lumia phones that run Windows Phone software. Microsoft is also paying $2.2 billion for a 10-year license to use Nokia's patents with an indefinite extension option.

"We are very excited about the proposal to bring the best mobile device efforts of Microsoft and Nokia together," Microsoft CEO Steve Ballmer said in a memo. "We are receiving incredible talent, technology and IP (intellectual property)."

Redmond-based Microsoft said it will draw from its overseas cash resources for the transaction. When the deal closes in early 2014, about 32,000 Nokia employees will transfer to Microsoft, the companies said.

Finland-based Nokia said Stephen Elop will step aside as president-CEO to be executive vice president of Nokia devices and services. Chairman Risto Siilasmaa will stay in his current role and assume interim CEO duties.