Nokia said Monday it is buying navigation software maker Navteq Corp. for $8.1 billion. Nokia will pay $78 for each Navteq share including outstanding options. The deal has been approved by both companies boards and is subject to customary closing and regulatory conditions. It is expected to close during the first quarter of 2008.
Nokia will use the deal to integrate more navigation services into its products. Location-based services are one of the cornerstones of Nokia’s Internet services strategy, said Olli-Pekka Kallasvuo, president and CEO of the company. The acquisition of NAVTEQ is another step toward Nokia becoming a leading player in this space.
Chicago-based Navteq maintains digital maps and licenses them to global positioning systems companies. It also owns Traffic.com, a Web service that provides traffic information and content to consumers. Nokia said Navteq would continue to operate its maps business independently but as a Nokia business group.
Navteq was founded in 1985 and generated revenue of $582 million in 2006. It has approximately 3,000 employees located in 168 offices in 30 countries.
Nokia said it would finance the deal with a combination of cash and debt.