Microsoft has reached an agreement to sell the company’s entry-level feature phone assets to FIH Mobile, a subsidiary of Hon Hai/Foxconn Technology Group, and HMD Global for $350 million. As part of the deal, FIH Mobile will also acquire Microsoft Mobile Vietnam — the company’s Hanoi, Vietnam, manufacturing facility. Upon close of this deal, approximately 4,500 employees will transfer to, or have the opportunity to join, FIH Mobile or HMD Global, according to a statement by the company.
As part of the deal, Microsoft will transfer all of its feature phone assets, including brands, software and services, care network and other assets, customer contracts, and supply agreements. The transaction is expected to close in the second half of 2016, subject to regulatory approvals and other closing conditions.
Microsoft says it will continue to develop Windows 10 Mobile and support Lumia phones such as the Lumia 650, Lumia 950 and Lumia 950 XL, and phones from OEM partners like Acer, Alcatel, HP, Trinity and VAIO.