Here Maps (better known as NAVTEQ) – a leading mapping and navigation service of Nokia has been sold to automotive consortium Audi, BMW Group and Daimler. Each company will keep equal shares. Deal value comprises € 2,5 billion or € 2,8 billion by capitalization of the subsidiary. The consortium will obtain NAVTEQ at less cost because of Nokia debts in total amount of € 300 million.
Nokia received NAVTEQ by acquiring it 8 years ago for $ 8,1 billion being a mobile phone giant at that time. The deal was aimed to provide Nokia handsets with navigation service what made them competitive on the smartphones’ market. However Nokia had to sell its asset much cheaper than its original cost. Not intending to return to the smartphone manufacturing business Nokia just doesn’t need digital-mapping unit anymore. The transaction is to be closed in the first quarter of 2016.
Microsoft didn’t need this service. Though typically auto-manufacturers purchased NAVTEQ basemaps to develop navigation apps installed in cars. Today these basemaps will be used in the manufacture of autonomous vehicles that require detailed maps in order to drive itself. HERE Maps didn’t meet a ready consumers’ market because of widespread analogous product of Google.