Nokia announced its acquisition of navigation software developer Navteq for $8.1 billion. Nokia will pay $78 in cash for each Navteq share, including outstanding options--the acquisition has been approved by the board of directors of each firm. Navteq's digital map services span 69 countries across six continents--in 2005, the firm teamed with Nokia to create mobile search solutions for the handset giant's smartphone range. In addition to Nokia, Navteq's corporate partners include automakers like Chrysler, Ford, Mercedes-Benz and Volkswagen.
The Navteq negotiations represent Nokia's latest move into the mobile services market--in early September, the company Nokia introduced Ovi, a new Internet services brand developed to expand its focus beyond mobile devices and platforms to embrace a range of web services. Ovi--"door" in Nokia's native Finnish--promises to enable consumer access to social networks, communities and content as well as provide a gateway to Nokia services. Its Nokia Maps navigation service also falls under the Ovi aegis.
"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," said Nokia president and CEO Olli-Pekka Kallasvuo in a prepared statement. "By joining forces with Navteq, we will be able to bring context and geographical information to a number of our Internet services with accelerated time to market. We also look forward to maintaining and enhancing the services and support provided to Navteq's existing and future customers."
For more on the Nokia/Navteq deal:
- read this release
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