Nokia sells HERE Maps for $3 billion to a collection of German automakers

Nokia sells HERE Maps to automotive companies, including AUDI AG, BMW Group and Daimler AG

Last month, a report popped up hinting at the acquisition of Nokia’s HERE mapping service by multiple German car manufacturers after Uber and Microsoft dropped out of the bidding war. It turns out the report was spot on as Nokia has issued a press release announcing the sale of their HERE mapping service (via Windows Central). The press release states that their HERE digital mapping and location services business have been sold to a consortium of car manufacturers including AUDI AG, BMW Group, and Daimler AG for €2.8 billion ($3 billion). The deal is expected to close in the first quarter of 2016 as it’s subject to several regulations and regulatory approvals.

The President and CEO of Nokia explained that this sale is another step in Nokia’s transformation

“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. 

The car manufacturers will use the new HERE maps to extend their products and services. As for mobile apps, the company ensures that the acquisition will not affect the mobile apps, which are Android, iOS and Windows Phone. It will be quite interesting to see what the car manufacturers will make out of the services and how they will use it to improve their current products and services.

Now with the sale of HERE mapping and services, Nokia will consist of two key businesses, Nokia Technologies and Nokia Networks. Nokia Technologies will continue to provide advanced technology development and licensing while Nokia Networks will be the provider of broadband infrastructure and services to other companies. Things will definitely get better after Nokia combines with Alcatel-Lucent, which will improve the network technology and services business for the Finnish company. The deal is expected to close in the first of 2016 as well.

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