Nokia set to takeover US-based buying Navteq for $8.1b

Nokia is buying US navigation software maker Navteq for around $8.1 billion as the world's largest mobile phone maker continues to expand services and content, an Associated Press report said.

The Associated Press report said under the agreement approved by the boards of both companies, Nokia will pay $78 in cash for each Navteq share, including outstanding options.

The report said Chicago-based Navteq maintains digital maps which it licenses to global positioning systems and web sites. Founded in 1985, it has around 3,000 employees in 168 offices in 30 countries.

Nokia said Navteq would continue to support its existing customers as before, with the Navteq map data business continuing to operate independently, but that it would be organized as a Nokia group company, the report said.

The Associated Press report quoted Nokia president and CEO Olli-Pekka Kallasvuo as saying that 'location-based services are one of the cornerstones of Nokia's Internet services strategy. The acquisition of Navteq is another step toward Nokia becoming a leading player in this space.'

Nokia has made several acquisitions to expand Internet services. The company announced last month that it would buy Enpocket, a US-based mobile advertising company, and last year acquired Loudeye to expand its digital music offerings, the report said.