EQT To Acquire 90% Of Nokia’s Vertu Division
Nokia announced a series of severe measurements for the near future: the company will fire 10,000 employees and sell the Vertu division. They Finland-based company is trying hard to get out of their difficult financial situation. The company registered a loss of $1.2 billion in the last quarter of 2011, while Q1 2012 made it lose $1.7 billion.
It seems that Nokia’s luxury phone division will be acquired by EQT investment firm, while the Finish company will only keep 10% of the shares. Nokia recently bought a Swedish software company, Scalado AB, in an attempt to strengthen their Windows Phone services portfolio.
As about the 10,000 layoffs, it means that some of the production plants in Finland, Germany and Canada will be closed and that several CEOs will be sacked. The number of jobs that will be terminated represents a fifth of the total employees working for Nokia. This year’s layoffs come after Nokia terminated the contracts of almost 14,000 employees.
Stephen Elop, who was named Nokia CEO in 2010, reorganizes the giant phone maker after the company lost the battle against Apple and Samsung over the past few years.
The Vertu phones are manufactured in United Kingdom, in the Church Crookham-based factories. The most expensive Vertu phone ever produced is Signature Cobra, costing over $300,000, while the most expensive series model is Signature Diamond which has a price tag of $83,000. The prices of the Vertu phones begin with $5,000 for the Constellation model. The phones are hand made, with premium materials – steel, ceramics, carbon fiber, high-quality leather, sapphire displays or 18 karat gold.
Everyone knows that Nokia plans to make their operations more efficient and the Vertu division is no longer wanted in their portfolio. It looks like Nokia already found an investment firm willing to pay $250 million for the luxury phone maker.
The deal will be signed and it should be made public next week. The Vertu acquisition will be completed in the second half of 2012. The Vertu phones were popular among the wealthy circles, and the exotic materials and huge prices made them a sort of Rolls Royce of the phones.