On Monday, Nokia formally announced it has agreed to sell its HERE mapping business to German automakers – including Audi, AG, BMW and Daimler AG – for $3.07 billion.
The deal is expected to close in the first quarter of 2016, subject to regulatory approvals.
“With this step we complete the latest stage of Nokia’s transformation,” said Nokia president and chief executive officer Rajeev Suri. “Going forward, 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.”
According to a company press release, HERE has been working on developing a “location cloud that harnesses the power of data generated by vehicles, devices and infrastructure to deliver real-time, predictive and personalized location services,” and is working toward developing services that will enable new driver experiences, such as highly automated driving.
Prior to the agreement, HERE had remained a bright spot for Nokia’s earnings, generating an operating profit of $30.7 million for the first half of 2015. However, in light of its proposed combination with Alcatel-Lucent, which is expected to be completed in the first half of 2016, Nokia announced a review of strategic options for HERE in April 2015.
As of the end of June, HERE had 6,454 employees. Nokia plans to report HERE as a discontinued operation from the third quarter of 2015 onwards, but the company will continue to operate as a business of Nokia until the closing of the transaction.
Following the closing of the HERE agreement, Nokia’s remaining businesses will consist of Nokia Networks and Nokia Technologies. Nokia Networks will continue to be a leading provider of broadband infrastructure software and services and Nokia Technologies will continue to provide technology development and licensing, the company said in its press release.