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Nokia sold HERE maps to 3 Car Makers, Audi, BMW and Daimler

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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.

Nokia has stated that its net proceeds from the deal would be around EUR 2.5 billion (or approximately $2.8 billion), according to its original estimate. The deal is estimated to close in the first quarter of 2016 which are subject to customer closing conditions and regulatory approvals.

“The transaction values HERE at an enterprise value of EUR 2.8 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 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.”

Nokia has already sold its mobile phone business to Microsoft. Now after selling its mapping platform, Nokia is left with its telecom and network equipment business and a whole lot of patents.

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