BMW, Audi and Mercedes buy Nokia’s map service by 2.8 billion euros – Jornal de Negócios – Portugal

BMW, Audi and Mercedes buy Nokia’s mapping service for EUR 2.8 billion

The BMW, Audi and Daimler – owner of the Mercedes brand – will give 2.8 billion euros by Nokia maps business, surpassing technological rivals in getting the location service, key part for developing cars that drive themselves

The three German car producers have joined forces and will hold equal shares of the business location and maps, known as “HERE” can be read in the statement that accounts for the purchase of maps and system location with Nokia. BMW, Audi and Daimler will pay about 2.5 billion euros for this system, writes Reuters, noting that the total value of the deal will be around 2.8 billion, accounted for when the liability.

Later, car producers will invite the General Atlantic to join the consortium as an investor and potential mediator, writes Reuters, citing sources close to the process.

“This acquisition aims to ensure the long-term availability of HERE’s products and services as an open platform, independent and value creation of maps and other mobility services, accessible to all customers automotive industry and other sectors “, can be read in the statement issued by Daimler.

HERE” will continue to offer six services and products to the entire industry, “guarantees this statement, and its management “will continue to be independent.”

However, with this acquisition “there is the risk that the other vehicle manufacturers are pushed to Google’s arms, “says Richard Windsor, an analyst quoted by Reuters. Note that the main competitor of HERE is the Google Maps service.

HERE maps currently provides about 80% of cars with navigation system in North America and Europe.

In this business, the German producers have used their influence with key customers of this technology to block other offers, considered Mikael Rautanen analyst, quoted by Reuters, explaining how the sale price “be lower than originally expected “.

The Nokia predicted that this business was achieved by values ​​of around 4000 million (EUR 3600 million), advancing to the Bloomberg 21 July.

The importance of this business relates to the fact that “real-time maps and location services are the basis for the mobility of tomorrow.”

“The HERE is building the next generation of mobility bases,” says this statement, stressing that “for the automotive industry this is the basis for new assistance systems, and ultimately, conduct autonomous. “

The deal is now subject to the approval of the competent authorities and should be finalized in the first quarter of 2016.