Nokia is ready to sell its HERE map business to German car makers

Nokia is close to finishing an agreement to sell its maps unit to German luxury-car makers BMW AG, Mercedes-Benz parent Daimler AG and Audi AG for a deal estimated at approximately 2.5 billion euros.

A final agreement on the question of which automaker will hold patents and certain property rights is still unsettled. HERE provides mapping data to about 80 percent of cars with in-dash navigation systems in North America and Europe, and the luxury-car makers have already been using HERE mapping services in their navigation systems. This gave them an advantage over other businesses such as Uber Technologies Inc. who were also considered buying the maps unit from Nokia.

Car giants are focusing at the moment on mapping technologies as they are looking ahead to make self-driving cars a reality. Although Google is ahead of everybody else, Tesla has publicly announced plans for developing self-driving car technology. This deal would give BMW, Daimler and Audi access to the detailed maps that smart vehicles of the future will depend on.

The deal is expected to close soon and will likely be announced as early as July 31.

Source: Wall Street Journal

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