Nokia completes its next phase of transformation with the sale of its digital mapping and location services, HERE. The company has entered into an agreement with a venture by the German automotive industry consortium that comprises AUDI AG, BMW Group and Daimler, to sell the unit for a sum of EUR 2.8 billion. All three members of the consortium will take an equal stake in the new venture.
HERE recorded an operating profit of 46 million euros for the first half of 2015, according to Nokia.
Upon closing the HERE transaction, Nokia will consist of only two businesses, Nokia Networks and Nokia Technologies. With its merger with Alcatel-Lucent which is expected to close in the first half of 2016, Nokia will be focusing in next generation technologies and services for an IP connected world.
Rajeev Suri, President and Chief Executive Officer of Nokia
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.
HERE President Sean Fernback
I believe today’s announcement is a very good outcome for HERE, its customers and employees. The new ownership structure of HERE will allow us to accelerate our strategy, further scale our business and fulfill our intent to become the leading location cloud company across industries.