Nokia will offer Here maps to carmakers in a $3 billion deal - Insane Visions

Nokia will offer Here maps to carmakers in a $3 billion deal

nokia here maps

Finnish company Nokia seems to be in the spotlight these days, being link with two of the most important deals of the moment. After announcing their plans to buy Franch network rival Alcatel-Lucent for $17.6 billion, if more than half of the latter’s investors will tender their shares, Nokia is also looking forward to closing a deal with a group of German car manufacturers, interesting in buying Here maps.

BMW, Audi and Daimler cars will use the system

According to Venture Beat, the former mobile phone giant is expected to conclude the sale on December 4, even though initial rumors were pointing to the first quarter of 2016. Still, all the regulatory approvals were received earlier.

Here maps will be offered to a consortium of car companies, consisting in Audi, BMW and Daimler, for a total of $3.07 billion, as stated by the above-mentioned source.

Currently, Nokia’s Here maps system is providing mapping technology for a lot of companies which don’t rely on Google Maps, like Amazon, Bing, Yahoo, Baidu or GPS-manufacturer Garmin. To be more specific, it’s powering more than 80 percent of in-car GPS navigation systems.

A very smart move made by Nokia

Back in 2014, more than 50 percent of the department’s revenue came from the automotive industry, so it’s pretty obvious why Nokia decided to make this deal with the carmakers. Even more, before the agreement was made, other important companies, like Facebook and Uber, also showed interest in buying Here maps.

Lately, Nokia, which was once the world’s top smartphone makes, has focused on providing networks for mobile technology. After the acquirement of Alcatel-Lucent, they will become the market leader in networks.

Andrei

A finance and tech news journalist with a passion for entrepreneurship and business. Feel free to message me on Twitter and Facebook.