Nokia To Sell Vertu To Permira For £164 Million

The Finnish phone maker saw its credit rating being drastically downgraded recently, with its position declining on the market. Under pressure from investors and in order to get better resources to face the fierce competition, Nokia has decided to let go one of its side businesses.

According to recent reports, Nokia is "in advanced talks" to sell UK subsidiary Vertu to private equity group Permira. The Financial Times has published a report on the matter, quoting anonymous sources with inside knowledge of the situation.

The article points out that Nokia hopes to get €200 million (about £163.4 million). Vertu is the most expensive mobile phone brand in the world, selling luxury tech labels such as Hugo Boss and Valentino.

Nokia launched Vertu 14 years ago, with the specific purpose to attract the rich and famous to its stylish and exclusive mobile phone models. The handmade phones from Vertu have precious components.

The devices feature crystal displays, sapphire keys and come with built-in concierge services - with prices reaching £200,000 for the devices. People familiar with the subject suggest that the buyers are not attracted by Vertu's technology, but rather by the brand's reputation.

Source: FT (registration required)