(Telecompaper) Microsoft has agreed to acquire the mobile phone business of Nokia for EUR 3.79 billion. In addition it will pay EUR 1.65 billion to license Nokia's patents, bringing the total value of the deal to EUR 5.44 billion in cash. The takeover follows Nokia's decision in early 2011 to adopt Microsoft's Windows software for its smartphones. Microsoft said the takeover will allow it to accelerate the growth in Windows and expand its share of the mobile phone market, through faster innovation, increased synergies, and unified branding and marketing. Pending approval by Nokia's shareholders and regulators, the deal is expected to close in the first quarter of 2014. MIcrosoft will finance the takeover from its existing cash. The acquisition includes all of Nokia's Devices and Services business, including around 32,000 employees and the Lumia and Asha brands. The operations generate around EUR 14.9 billion in revenues, or almost 50 percent of Nokia's sales for 2012. Nokia will retain ownership of the Nokia name and license it to Microsoft. Nokia also holds on to its patent portfolio, to which Microsoft receives a 10-year non-exclusive licence. Nokia CEO Stephen Elop will move back to Microsoft and become head of the company's devices business, including mobile phones, the Xbox and the Surface tablet.