Microsoft is set acquire Nokia's handset business, patents and mapping services for $7.2bn (£4.6bn) to enhance its market share in mobile devices area.
If it is successful, about 32,000 people from Nokia are expected to join Microsoft, which already has a staff of about 99,000.
Nokia's CEO Stephen Elop and other executives Jo Harlow, Juha Putkiranta, Timo Toikkanen, and Chris Weber are also expected to be transferred to Microsoft.
Nokia will retain its headquarters in Finland, chief technology office (CTO), and patent portfolio.
Nokia interim CEO Risto Siilasmaa said: "With our strong corporate identity, leading assets and talent, and from a position of renewed financial strength, we will build Nokia's next chapter."
Microsoft CEO Steve Ballmer said that the deal is a win-win for employees, shareholders and consumers of both companies.
"Bringing these great teams together will accelerate Microsoft's share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services," Ballmer added.
Nokia plans to focus on its NSN, HERE, and Advanced Technologies, after the closure of the acquisition. The transaction, which is subject to regulatory approvals, is expected to close in the first quarter of 2014.
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