Menu
Nokia reaches deal to sell Here business to Audi, BMW Group and Daimler

Nokia reaches deal to sell Here business to Audi, BMW Group and Daimler

Nokia will get US$2.7 billion as net proceeds from the deal

Nokia has reached an agreement to sell its Here mapping and location services business to an automotive industry consortium consisting of Audi, BMW Group and Daimler, in a deal that gives the business an enterprise value of €2.8 billion (US$3.1 billion).

The deal fits with the plans of the automakers to progressively introduce more Internet-based services and automation to assist drivers. Here is developing a location cloud that uses the data generated by vehicles, devices and infrastructure to deliver real-time, predictive and personalized location services, Nokia said in a statement Monday.

The three automotive companies said they will each hold an equal stake in Here, but will take a hands-off approach to the business which will be run independently to serve the entire industry.

The companies said the acquisition aims to ensure the long term availability of Here products and services as an open and independent platform for cloud-based maps and other mobility services that will be accessible to customers from the automotive industry and other sectors.

Here provides mapping and location intelligence for nearly 200 countries in more than 50 languages. With 6,454 employees at the end of June, Here had a non-IFRS operating profit of €46 million on net sales of €552 million for the first half of 2015.

On closure of the deal, expected in the first quarter of 2016, Nokia will stay with two businesses - Nokia Networks focused on broadband infrastructure, software and services, and Nokia Technologies to offer advanced technology development and licensing.

Though the deal values the Here business at €2.8 billion, Nokia will get net proceeds of a little above €2.5 billion for the sale, to compensate the purchasers for certain liabilities of Here to the tune of about €300 million.

Nokia agreed in April to buy Alcatel-Lucent in a deal that values the French telecommunications equipment maker at €15.6 billion. It announced at the time that it would consider a divestment from its Here business. The acquisition of Alcatel-Lucent was approved by the European Commission last month.

The Finnish company, which sold its smartphone business to Microsoft, said recently that it could get back to the mobile phone business, but in the fourth quarter of 2016 at the earliest, in line with its agreement with Microsoft. It would use a brand-licensing model and identify a partner who would do the "heavy lifting" of manufacturing, sales, marketing and customer support, rather than make its own phones. It said last week it had developed the OZO VR camera for virtual reality applications.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesInternet-based applications and servicesBMW GroupDaimlerMapsNokiaAudiMergers and acquisitions

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments