Microsoft has agreed to pay a total of Rs 2.5 crore as compensation to telecoms operator Tata Consultancy Services Ltd (TCS) for a breach of contract in relation to its acquisition of Nokia Corp. on December 1, 2017, according to a statement from the company.
Tata’s stake in Nokia was worth approximately $2.4 billion at the time of the deal.
The agreement will cover Tata’s existing franchise agreements with Tata Consultancies, which Tata had with Nokia, and its new franchise agreements, which the company will be required to enter into as part of the compensation agreement.
In December 2017, Tata had already paid up to $3.7 billion to Nokia for its Nokia Mobile business.
Microsoft had previously paid Tata nearly $1.5 billion for its stake in Microsoft.
The company said it will also pay a further $2 billion to the Tata Consultants in a separate payment.
The settlement, announced on Thursday, covers the terms of the agreement between Microsoft and TCS, which was approved in a public hearing in February 2018.
TCS had signed an agreement with Microsoft in January 2018.
Tata has not yet disclosed how much it paid Microsoft, or when it will pay Tata.
The payment was part of a $1 billion settlement in November 2017.
Microsoft’s acquisition of the mobile phone and internet company led to a massive increase in revenues for Microsoft and helped the company’s bottom line grow.
It was also one of the largest deals in the history of the firm, according in its first-quarter earnings report released in March.
However, as part the deal, Tata agreed to sell a portion of its stake to Microsoft.