Nokia is to take over the control of Symbian by buying Psion’s shares in the company for £135 million.
Symbian, owned by a core group of mobile industry players, will continue to pursue its licensing business of the standards-based Symbian operating system (OS).
Psion will receive an initial fixed payment of £93.5 million or 22.5 pence per Psion share, in cash, on completion of the deal, followed by payments in March 2005 and March 2006. The two subsequent payments will be equal to the total number of devices containing the Symbian operating system sold by licensees in 2004 and 2005, respectively, multiplied by 84 pence per unit.
Upon completion of the transaction, Nokia estimates that it will hold approximately 63.3%shares in Symbian, up from its current 32.2%.
The transaction is subject to clearance by competition authorities and approval by Psion’s shareholders. Completion of the transaction is expected to take place over the next few months.
Psion says that it will now focus its resources on developing its Psion Teklogix business.