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© joingate dreamstime.com Electronics Production | August 03, 2015

The German carmakers won the HERE battle

Nokia has entered an agreement to sell its HERE digital mapping and location services business to a consortium of automotive companies, comprising Audi AG, BMW Group and Daimler AG.
The transaction values HERE at an enterprise value of EUR 2.8 billion 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.

Rajeev Suri, President and Chief Executive Officer of Nokia, said: "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. 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."

Upon closing of the HERE transaction, Nokia will consist of two businesses: Nokia Networks and Nokia Technologies. Nokia Networks will continue to be a provider of broadband infrastructure software and services. Nokia Technologies will continue to provide technology development and licensing. Nokia's proposed combination with Alcatel-Lucent is expected to close in the first half of 2016.

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