Business sold to consortium of leading automotive companies
Nokia has announced today that it has completed the sale of its HERE digital mapping and location services business to a consortium of leading automotive companies, comprising of AUDI AG, BMW Group and Daimler AG.
The sale of HERE is the latest stage of Nokia’s transformation ahead of its planned combination with Alcatel-Lucent, which is expected to close in the first quarter of 2016.
The transaction, which was originally announced on 3 August 2015, valued HERE at an enterprise value of Euro 2.8 billion, subject to certain purchase price adjustments. Based on the current estimates of such adjustments, Nokia received net proceeds from the transaction of approximately Euro 2.55 billion at closing, which is consistent with Nokia’s earlier estimated net proceeds of slightly above Euro 2.5 billion.
Final adjustments will be made based on the verified closing balance sheet.
As previously announced, Nokia expects to book a gain on the sale and a related release of cumulative foreign exchange translation differences totalling approximately Euro 1 billion as a result of the transaction.
HERE is a particularly attractive proposition for the automotive market because of its recent announcement that it is developing a location cloud that harnesses the power of data generated by vehicles, devices and infrastructure to deliver real time, predictive and personalised location services.