The world’s three largest manufacturers of luxury cars has bought an equal share of Nokia’s HERE Maps devision, and the transaction is expected to be completed in the first quarter of 2016. The Germa Automaker’s include BMW AG, Audi AG and Daimler AG has aquired Nokia Oyj’s digital-mapping unit for 2.8 billion euros ($3.1 billion) to gain technology for connected cars that will eventually be the basis for self-driving cars.
Nokia also said it will get net proceeds on the sale of slightly more than 2.5 billion euros and the deal has now been confirmed and the car makers will pay €2.8 billion for HERE Maps. All the three automakers will have three, separate roles: as investors, customers and suppliers of data.
Licensing fees for its maps are HERE’s main source of revenue. It generated an operating profit of 28 million euros in the first half of this year, Nokia said. The unit reported a loss of 1.24 billion euros last year, including a goodwill impairment charge of 1.21 billion euros. Nokia is selling HERE to focus on making mobile-phone network equipment and the price camares with the $8.1 bilion that Espoo, Finland-based Nokia paid in 2008 for map provider Navteq Corp., one of the businesses that it combined to create HERE.
“With this step we complete the latest stage of Nokia’s transformation. We integrated the former Nokia Siemens Networks, divested our Devices & Services business, and have now reached agreement on a transaction for HERE that we believe is the best path forward for our shareholders, as well as the customers and employees of HERE. Going forward, we will focus on our planned combination with Alcatel-Lucent. Once that is complete, Nokia will be a renewed company, with a world-leading network technology and services business, as well as the licensing and innovation engine of Nokia Technologies.”
said Rajeev Suri, President and Chief Executive Officer of Nokia.
Nokia’s HERE provides Maps data for about 80 percent of cars with in-dash navigation systems in North America and Europe. The car makers are expected to continue to keep existing HERE Maps partnership with companies like Microsoft, Samsung and more. Mapping software is also expected to continue to be available on mobile devices and apparently looks like the car makers will evidently develop the platform for future plans.