Microsoft has announced it is buying mobile phone manufacturer Nokia, complete with all its devices and services.

The buy-out has reportedly Microsoft a figure close to $AUD5.56 billion just for the devices and services, with an additional $AUD2.41 billion for all of Nokia’s patents.

Microsoft’s newest buy includes the Lumia line of mobile phones, as well as currently unreleased devices. It will also signal the departure of Nokia CEO Stephen Elop, who will step down to become an executive vice president of a smaller division.

Nokia and Microsoft have worked collaboratively before, with a partnership in 2011 leading to a roll-out of the Windows Mobile operating system on Nokia phones.

The deal is expected to close in the first quarter of 2014.

Microsoft’s Steve Ballmer has released a statement saying: “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... in addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution.”