We have been hearing rumors that a consortium of German automakers were about to buy Nokia’s HERE Maps, the deal has now been confirmed and the car makers will pay €2.8 billion for HERE Maps.
The German consortium of automakers is made up of Audi AG, BMW Group and Daimler AG (Mercedes), more details below.
Nokia today announced an agreement to sell its HERE digital mapping and location services business to a consortium of leading automotive companies, comprising AUDI AG, BMW Group and Daimler AG (the “Consortium”). The transaction values HERE at an enterprise value of EUR 2.8 billion with a normalized level of working capital and is expected to close in the first quarter of 2016, subject to customary closing conditions and regulatory approvals. Upon closing, Nokia estimates that it will receive net proceeds of slightly above EUR 2.5 billion, as the purchaser would be compensated for certain defined liabilities of HERE currently expected to be slightly below EUR 300 million as part of the transaction. Nokia expects to book a gain on the sale and a related release of cumulative foreign exchange translation differences totaling approximately EUR 1 billion as a result of the transaction.
The car makers are expected to continue to keep existing HERE Maps partnership with companies like Microsoft, Samsung and more.
The mapping software is expected to continue to be available on mobile devices and it looks like the car makers will continue to develop the platform.