» » » » » » » » » » 👉 German carmaker's consortium (AUDI, BMW and Daimler) agree to buy NOKIA's HERE maps for €2.8 (EUR) billion

German carmaker's consortium (AUDI, BMW and Daimler) agree to buy NOKIA's HERE maps for €2.8 (EUR) / $3.1 (USD) billion. Nokia completes next stage of transformation with agreement to sell HERE to automotive industry consortium at an enterprise value of  €2.8 (EUR) billion. 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").
German carmaker's consortium (AUDI, BMW and Daimler) agree to buy NOKIA's HERE maps for €2.8 (EUR) billion
German carmaker's consortium (AUDI, BMW and Daimler) agree to buy NOKIA's HERE maps for €2.8 (EUR) billion
In April 2015, Nokia announced a review of strategic options for HERE in light of its proposed combination with Alcatel-Lucent. The announcement of this sale to the Consortium concludes that strategic review process.

The transaction values HERE at an enterprise value of  €2.8 (EUR) 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 €2.5 (EUR) billion, as the purchaser would be compensated for certain defined liabilities of HERE currently expected to be slightly below €300 (EUR) 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 €1 (EUR) billion as a result of the transaction.

HERE is developing a location cloud that harnesses the power of data generated by vehicles, devices and infrastructure to deliver real-time, predictive and personalized location services. In the automotive industry, where it serves most of the world's leading automakers, its focus is on developing precise and accurate mapping as well as services that will enable an entirely new class of driver experiences, including highly automated driving. The company also serves the world's leading enterprises and Internet players, including Microsoft, Samsung and SAP, and offers highly rated apps to consumers using Android, iOS and Windows Phone.

HERE has been a separate operating and reportable segment for financial reporting purposes for Nokia with a non-IFRS operating profit of €46 (EUR) million on net sales of €552 (EUR) million for the first half of 2015, and a non-IFRS operating profit of €31 (EUR) million on net sales of €971 (EUR) million for the full year 2014. In reported terms, HERE generated an operating profit of €28 (EUR) million for the first half of 2015, and an operating loss of €1 241 (EUR) million for the full year 2014, with the latter including a €1 209 (EUR) million charge for the impairment of goodwill. At the end of June 2015, HERE had 6 454 employees. Nokia plans to report HERE as a discontinued operation from the third quarter of 2015 onwards. HERE will continue to operate as a business of Nokia until the closing of the transaction.

Upon closing of the HERE transaction, Nokia will consist of two businesses: Nokia Networks and Nokia Technologies. Nokia Networks will continue to be a leading provider of broadband infrastructure software and services. Nokia Technologies will continue to provide advanced technology development and licensing. Nokia's proposed combination with Alcatel-Lucent is expected to close in the first half of 2016, subject to customary closing conditions and regulatory approvals, and will create an innovation leader in next generation technology and services for an IP connected world.

Nokia suspended its capital structure optimization program in conjunction with the announcement of the proposed combination with Alcatel-Lucent. As previously stated, Nokia intends to evaluate the resumption of a capital structure optimization program after the closing of the proposed Alcatel-Lucent transaction.

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