Telecom solutions powerhouse Nokia completed the sale of its Here mapping and services unit to a group of German automakers comprised of Audi, BMW and Daimler-Benz for more than $3 billion.
According to the company, “Nokia received net proceeds from the transaction of approximately [$2.79 million], which is consistent with Nokia’s earlier estimated net proceeds. …The sale of Here is the latest stage of Nokia’s transformation ahead of its planned combination with Alcatel-Lucent, which is expected to close in the first quarter of 2016.”
Nokia began discussing a sale of Here back in April. Early in the process, Facebook was reportedly a potential buyer as the social media company signed a deal with Nokia to use Here maps in the mobile version of the app.
TechCrunch reported other potential buyers include Apple, Samsung, Uber, Baidu, Alibaba, Tencent and Yahoo.
The first reports of a deal with German automakers for the mapping service came out in May. At the time, The Wall Street Journal reported BMW, Audi and Daimler-Benz are teaming up with China’s Baidu to launch a bid for Here.
On Dec. 3, Nokia shareholders approved the proposed $16.5 billion acquisition of French-based supplier Alcatel-Lucent.
Nokia has obtained all the regulatory approvals required to proceed with the proposed transaction. In April 2015, the two vendors agreed to close a deal whereby Nokia would make an offer for all of the equity securities issued by Alcatel-Lucent through a public exchange offer in France and in the U.S. The $16.5 billion transaction is expected to close in the first quarter of next year.
“Nokia’s shareholders have shown the full extent of their support for our proposed combination with Alcatel-Lucent,” said Nokia Chairman Risto Siilasmaa. “By ratifying the transaction in such great numbers, they have endorsed our strongly held belief that the combined company will be better positioned to compete as a world leader in network technologies over the long term.”
