Putting an end to all speculations, Nokia today announced that it has sold its HERE Maps business to a trio of German automakers. Audi, BMW and Daimler will complete the buyout by the first quarter of next year in a deal worth $3.07 billion. Also Read - Nokia C20 Plus budget smartphone launched: Check specs, price and other detailsAlso Read - Nokia C01 Plus with an upgraded processor and bigger battery launched
With this step we complete the latest stage of Nokia’s transformation. We integrated the former Nokia Siemens Networks, divested our Devices & Services business, and have now reached agreement on a transaction for HERE that we believe is the best path forward for our shareholders, as well as the customers and employees of HERE, Rajeev Suri, President and CEO of Nokia said. Also Read - Apple’s Craig Federighi admits the level of Mac malware is not acceptable, iOS fairs better
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, he added.
The future of HERE Maps is up in the air since last year, when Nokia sold its handset business to Microsoft. Along with announcing its acquisition of Alcatel-Lucent earlier this year, Nokia had also revealed that it was reviewing its options for HERE.
Since then quite a few companies are said to have been interested in Nokia s mapping business. At one point Uber was said to have made a bid, while other companies interested included Amazon, Facebook, Apple and Alibaba.
A couple of weeks back though, WSJ reported that Uber had bowed out of the race, and the German automakers were the closest to sealing a deal with Nokia. As per the report, these automakers are inviting other car companies to buy a stake in the business, which could result in these companies integrating Nokia s HERE maps into their infotainment systems.
Buying an established and proven service gives these car companies the advantage of not having to build a mapping service from scratch. Most of these companies are also rumored to be working on self-driving cars, and could integrate Nokia s mapping technologies.