A Finnish company, HMD Global Oy, will now create Nokia-branded phones and tablets and such phones and tablets would be manufactured by a subsidiary of Taiwan’s Foxconn.

An exclusive 10-year licensing deal with the Finnish company has been signed by Nokia , the company said.

Nokia had to sell off its entire handset business to Microsoft in 2014 after the company found itself wrong footed by the rise of smartphones. Nokia was the world’s biggest maker of mobile phones not so long ago.

Awaiting a long period due to a non-compete deal with Microsoft struck during the sell-off, Nokia has now started to prepare a comeback through the brand-licensing route and has been aided by it holding on to phone patents which it had not sold to Microsoft.

It will receive royalty payments from HMD for sales of Nokia-branded mobile products, covering both brand and intellectual property rights, Nokia said in a statement. The Finnish company currently makes most of its sales by telecom network equipment.

“Instead of Nokia returning to manufacturing mobile phones itself, HMD plans to produce mobile phones and tablets that can leverage and grow the value of the Nokia brand in global markets,” said Ramzi Haidamus, head of Nokia’s patent unit.

In what can be called a turn of events of sorts, Microsoft announced it would sell its entry-level phone assets to Foxconn’s subsidiary FIH Mobile and HMD for $350 million on Wednesday, the same day that Nokia announced news of its deal with the Finnish company to create Nokia-branded phones and tablets.

The rights to use the Nokia brand on basic phones until 2024 is being bought by HMD Mobile as a part of that deal.

“Together, these agreements will make HMD the sole global licensee for all types of Nokia-branded mobile phones and tablets,” HMD said in a statement.

Smart Connect LP, a private equity fund managed by former Nokia executive Jean-Francois Baril, and its management owns HMD, a newly-established firm.

No timetable for its new devices was given by Nokia. The deal between Microsoft and HMD is expected to close in the second half of 2016.

Last year Microsoft has had to write off $7.5 billion from the former Nokia unit as the IT company struggled with the phones business.

However, Microsoft on Wednesday said it will continue to develop its Lumia smartphones.

(Adapted from Reuters)