Nokia To Buy Navteq For 8+ Billion Dollars

October 1, 2007 – 9:04 am

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Nokia, based in Finland, recently announced that they are buying digital-map provider Navteq Corp. for $8.1 billion dollars. This is the largest buyout that Nokia has been involved with in their operating history.

“The navigation area is a fast-growing business, and with location-based services expanding rapidly into mobile-communications devices, the industry is poised for even further growth,” said Nokia Chief Executive Olli-Pekka Kallasvuo.

“The deal will strengthen Nokia’s position in the GPS/maps market. Given the big push around this area, this move makes sense,” said Carolina Milanesi, research director in the mobile devices and consumer services practice of Gartner.

The deal has been approved by both companies boards and is expected to close in the first quarter of 2008. Nokia is expected to finance the deal through a mix of cash and debt.

Marketwatch

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