Nokia Unloads HERE Maps To Audi, BMW And Daimler For $3 Billion

Nokia may be down, but it’s not out. The company stands to rake in $2.8 billion from a deal today in which the former cell phone behemoth is selling off its HERE mapping and location services business. Nokia first started looking for buyers in April while considering a deal with Alcatel-Lucent. Today, the move should help Nokia trim fat and build up cash in advance of the planned merger.

A consortium of auto companies, including Audi, BMW and Daimler bought Nokia’s HERE mapping business. The consortium is paying $2.8 billion, but Nokia says it expects to receive in the neighborhood of $2.5 billion when all is said and done.

Nokia here mapping service sale

“With this step, we complete the latest stage of Nokia’s transformation,” said Rajeev Suri, president and CEO of Nokia. “We integrate the former Nokia Siemens Networks, divested our Devices & Services business, and have now reached agreement on a transaction for HERE that we believe is the best path forward for our shareholders, as well as the customers and employees of HERE. Going forward, we will focus on our planned combination with Alcatel-Lucent. Once that is complete, Nokia will be a renewed company, with a world-leading network technology and services business, as well as the licensing and innovation engine of Nokia Technologies.”

After the HERE sale, Nokia will split into Nokia Networks and Nokia Technologies. The former will remain a broadband infrastructure software and services company, while Nokia Technologies will focus on “Next generation technology and services for an IP connected world,” according to a statement by Nokia.