Nokia sale of Here to automakers expected to close in first-quarter of 2016
Nokia Here mapping and navigation unit seems to be gaining traction with government bodies as evidenced by recent adoption by the Georgia, Alabama and Missouri departments of transportation.
The agencies are using the Here probe-based traffic services to help manage existing traffic loads, as well as plan for future transport-related projects.
Using real-time traffic data, coupled with an analytics engine, the agencies will gain “situational awareness, and performance management, including bottleneck identification, trend spotting, construction planning, before and after traffic studies and more.”
Monali Shah, Here director of global intelligent transportation services, said the company’s technology will push efficiency and safety.
“Managing the flow of traffic on the U.S. road network is no easy task, and Here is glad to support transportation agencies with the data that enables safer and more efficient vehicle movements across road networks,” he said. “As we move to connected and automated driving, dependable and accurate real time data will only increase in value for government agencies and drivers alike.”
Here is one of three Nokia business units that remained after the Finnish company sold its device business to Microsoft last year. The others are its wireless network equipment business and its patent licensing unit. Last month, Nokia announced plans to sell its Here maps business to raise cash as it prepares to acquire rival Alcatel-Lucent.
Nokia’s mapping algorithms are widely viewed as the world’s strongest competitor to the ubiquitous Google Maps. The companies that are looking at the Nokia unit are clearly interested in owning mapping technology instead of relying on Google.
On the topic of autonomous driving referenced by Shah, Uber reportedly was interested in purchasing Here, which was ultimately picked up by a consortium of automaker including BMW, Audi and Mercedes-Benz for more than $3 billion.
In August Nokia announced the finalization of its agreement to sell Here with the transaction expected to close in the first quarter of 2016, which seems to align well with the projected closing for the inbound Alcatel-Lucent organization during the first half of 2016. At the time of the proposed Alcatel-Lucent agreement in April, the strategic review of Nokia’s structure, which resulted in this sale, was initiated. Upon completion of the sale, Nokia will move forward with two business units – Nokia Networks and Nokia Technologies. At the end of June, Here had 6,454 employees and reported a $50 million (EUR 46 million) non-IFRS operating profit. Going forward, Nokia will report Here under discontinued operations.
The three newest state departments of transportation are just the latest to adopt Here. Since 2009 the Michigan Department of Transportation has used the service for traffic data and management.
“Safety is the top priority at the Michigan Department of Transportation as we focus our efforts on improving traffic flow,” MDOT Director Kirk Steudle said. “This data enables a safer road network and helps the environment because reducing congestion also reduces emissions.”
