Nokia sells up to Audi, BMW and Daimler to focus on its networking business
Nokia has completed the sale of its HERE maps business to a consortium of German car makers, raising funds for the Finnish firm ahead of its £11.2 billion merger with French rival Alcatel-Lucent.
Berlin-based HERE was one of three business retained by Nokia following the £4.6 billion sale of its devices and services unit to Microsoft, along with Nokia Networks and Nokia Technologies.
However the Finnish manufacturer’s desire to focus on and invest in the two latter businesses means it believes HERE is worth more to another party.
Nokia HERE maps
Uber and Facebook had also been among those linked with a move for HERE, but the desire from the auto industry to secure a platform that can power connected cars and even self-driving vehicles has won out.
Analysts claim the deal could create a de facto standard for developments like connected cars but are also keen to see if HERE, one of the few independent providers of mapping services to the technology industry, has any impact on a market dominated by Google in the consumer space.
The Nokia-Alcatel Lucent merger is expected to be completed early next year and wants to design and license smartphone designs for other manufacturers once the terms of its deal with Microsoft allow it to.
The new company will be divided into five units, with all operating as separate business groups with strategic, operational and financial responsibilities and reporting to Nokia CEO Rajeev Suri.
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