Finnish phone maker Nokia has entered into an agreement with NAVTEQ, a provider of comprehensive digital map information. Under the terms of the agreement, Nokia will acquire NAVTEQ and will pay $78 in cash for each of NAVTEQ’s shares.
Today, the navigation arena has become a fast growing business. Plus, location-based services are rapidly expanding into mobile devices.
NAVTEQ will bring a number of key assets to Nokia some of which are noted below:
As for NAVTEQ, the company will continue to provide the most advanced and flexible map data platform to navigation industry players.
Nokia together with NAVTEQ will be able to further strengthen its location-based services offering and bring to the market the most innovative, context aware Nokia Internet services with accelerated time to market.
Olli-Pekka Kallasvuo, President and CEO, Nokia said, “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.”
Commenting on the transaction, Christopher Galvin, Chairman of the Board of NAVTEQ said, “Nokia’s offer of $78 per share reflects a very attractive valuation for NAVTEQ’s stockholders, representing a 34% premium to our stock price of one month ago. In considering the offer, we approached other potential purchasers about their possible interest in NAVTEQ and our Board took those contacts and discussions into account in determining that Nokia’s proposal was the best opportunity available to maximize value for our stockholders.”
After the transaction is completed, NAVTEQ’s current map data business will continue to operationally independent, but organizationally as a Nokia Group company.