Nokia sells HERE unit to German carmakers

Nokia sells HERE unit to German carmakers

Nokia Networks has sold its mapping business unit HERE to a consortium of premium German carmakers for €2.8 billion.

The sale marks a movement towards digital services for connected cars, and the consortium includes Daimler, BMW and Volkswagen’s Audi.

Each carmaker will receive an equal share of the company and the deal is expected to complete in Q1 2016.

Market watchers believe Nokia is selling HERE in order to increase its focus on mobile network infrastructure and the sale follows Nokia’s acquisition of French competitor Alcatel-Lucent in April this year.

The Alcatel acquisition was approved by the European Commission in June, and is expected to create the world’s largest supplier of mobile network equipment.