* Sells 500 patents to U.S. firm Vringo, Qt to Finnish Digia
* Vringo to pay $22 million plus share of future fees
* Digia to make Qt available for iOS, Android, Windows
* Nokia shares rise almost 9 pct
By Tarmo Virki
HELSINKI, Aug 9 Struggling cellphone giant Nokia
will sell some 500 wireless patents to U.S. firm
Vringo and divest its Qt software business to Finnish
IT services firm Digia Oyj to bolster its
fast-shrinking cash reserves.
Nokia is fighting for survival after losing the smartphone
war in which Apple and Samsung have gained
dominance. The world's second-largest cellphone maker has linked
up with Microsoft to sell phones using Windows software
but has so far had only limited success.
To halt losses Nokia unveiled a massive restructuring
programme in June, including cutting 10,000 jobs and said it
plans to divest non-core assets.
Following Thursday's deals shares in Nokia leapt and were
8.1 percent higher at 2.33 euros by 1251 GMT.
The patent deal nets Nokia $22 million, while still leaving
it with one of the strongest portfolios in the wireless
Vringo said it will pay cash for the patents, which cover a
broad range of technologies relating to cellular infrastructure.
Should the patents yield more than $22 million in revenues,
Nokia will collect a further payment of 35 percent of income.
Last month, Nokia reported a 1.53 billion-euro ($1.9
billion) loss for the second quarter. It burned some 700 million
euros of cash in the quarter and ended June with net cash of 4.2
The value of the deal in which Nokia will divest Qt software
to Digia was not disclosed, but analysts estimated it was a
fraction of the $150 million Nokia paid for Qt's then-owner
Norway's Trolltech in 2008.
Qt software was a central part of Nokia's strategy until
2011 when it decided to swap its own smartphone software for
Microsoft's Windows Phone.
"It was a big bet that got left in the cold when Nokia
ditched its own software platforms for Microsoft's Windows
Phone," said Geoff Blaber analyst at CCS Insight.
The software is used by more than 450,000 developers for
making applications for some 70 industries, including
automotive, medical, industrial automation and defense.
Shares in Digia jumped 10 percent on the deal.
"This arrangement seems like win-win as Qt will continue to
develop under Digia's umbrella," said Nordea analyst Sami
Up to 125 employees working on developing and licensing the
software will move from Nokia to Digia, the companies said on
Digia said it planned to make Qt available for making
applications for Apple's iOS platform, Google's
Android and Microsoft Windows 8.