Nokia Set To Sell Luxury Mobile Phones Division Vertu To Permira

In what is to be one of the biggest acquisitions for the year 2012, Britain based luxury mobile phones manufacturer, Vertu is now all set to be acquired by the European private equity firm Permira. The parent company of Vertu, Finland based mobile phone giant Nokia is now reportedly close to finalizing the deal, which as per estimates would bring in a whopping $264 million to Nokia. Since the emergence and subsequent increase in popularity of Google Android smartphones as well as the iPhone series, Nokia has been feeling the pinch of aggressively competitive mobile phone market. Vertu, which was founded in the year 1998, has for more than decade served as the face of bespoke luxury mobile phones that though lack the evolutionary technological prowess, yet have charmed their way into the world of the rich and the affluent with their gorgeous looks, mind blowing hand crafted designs and insane price tags. It wasn’t until October 2011 that the luxury phone behemoth launched its very first luxury smartphone in the form of the Vertu Constellation, a touch screen smartphone that is powered by the famed Symbian OS. The to-be buyer of Vertu, equity firm Permira is known to be the owner of several other luxury brands such as the likes of Hugo Boss and Valentino.

Vertu handsets have always been in the news especially for the use of exotic materials such as titanium, sapphire glass and gems that were used in their creation. However, another mind blowing aspect of these luxury phones is the staggering price tags that accompany these unique creations. Vertu handsets are known to begin from $8,000 and the prices continue to surge. A befitting example of an expensive Vertu ‘dumb’ phone is the Vertu Signature Cobra, a limited edition luxury phone that was launched in the year 2006 and carried an enormous price tag of $350,000. Furthermore, Vertu is also widely acclaimed in the luxury industry for its bespoke concierge service that has been designed exclusively for Vertu customers. This unique service is comprised of a phone application and a U.K based customer service center that strives local events and enticing deals with Vertu partners for its discerning clientele. As per the analysis of the proposed Vertu sale deal, this proposed venture will in fact play in favor of the now demining Nokia, which after embracing Windows Phone 7 and Windows 8 OS for its smartphones, while subsequently putting an end to Symbian OS will now be able to give more attention towards the middle market segment. Not only the $264 million deal will provide Nokia with much needed finances, but it will also help the company in focusing entirely on its current projects as well as its future endeavors.

Via Forbes

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