Nokia today said it has sold its HERE mapping business to automotive industry consortium in a deal valued at an enterprise value of EUR 2.8 billion or $3.07 billion.

The consortium of automotive companies includes AUDI, BMW and Daimler.

Nokia will receive around 2.5 billion euros or $2.74 billion, as the purchaser would be compensated for certain defined liabilities of HERE currently expected to be slightly below 300 million euros as part of the transaction.

With the divestment of HERE, Nokia will focus more telecom network business – especially after the completion of the deal to buy Alcatel-Lucent. Recently, Nokia received the green signal from the European Union for buying Alcatel-Lucent.

Nokia has posted 25 percent year-on-year growth in net sales of HERE to 290 million euros during the second of 2015, with 24 percent growth in new vehicle licenses for embedded navigation systems.

HERE achieved an operating profit of EUR 27 million, with operating margin increasing year-on-year to 9.3 percent from 0.0 percent.

Rajeev Suri, president and chief executive officer of Nokia, has been focusing on transforming the company in the last 2-3 years.
Earlier, Nokia integrated the former Nokia Siemens Networks, sold Devices & Services business, and now announced agreement to sell HERE. Nokia Networks also sold some of its businesses as part of its focus on mobile broadband business.

“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 Suri.

Upon closing of the HERE transaction, Nokia will consist of two businesses: Nokia Networks and Nokia Technologies.

Baburajan K
[email protected]