Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
?
EE Times-Asia > Embedded
?
?
Embedded??

Nokia nets navigation firm Navteq

Posted: 03 Oct 2007 ?? ?Print Version ?Bookmark and Share

Keywords:mobile communications devices? navigation? Internet-based mapping?

Mobile device manufacturer Nokia will acquire Navteq Corp., provider of digital map information for navigation systems, for about $8.1 billion. Under the terms of the agreement, Nokia will pay $78 in cash for each share of Navteq, including outstanding options. The acquisition has been approved by the board of directors of each company and is subject to customary closing conditions including regulatory approvals and the approval of Navteq's shareholders.

Navteq is a provider of comprehensive digital map information for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and business solutions. Navteq also owns Traffic.com, a web and interactive service that provides traffic information and content to consumers. The Chicago-based company was founded in 1985, generated 2006 revenues of $582 million and has approximately 3,000 employees located in 168 offices in 30 countries. It will continue to provide the most advanced and flexible map data platform to navigation industry players.

"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 Olli-Pekka Kallasvuo, president and CEO, Nokia. "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".

"Nokia's unique vision for location-based services aligns perfectly with Navteq's vision to enable everyone to find their way to people, places and opportunities on mobile communications devices, cars, desktop computers and in all the other places that are important to them," said Navteq President and CEO Judson Green. "It's really exciting to imagine what we can achieve by combining our location experience with the resources of a company that has a customer base of more than 900 million people."

'Very attractive valuation'
In 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 percent 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 completion of the transaction, Navteq's current map data business will continue operationally independent, but organizationally a Nokia Group company. The acquisition is expected to close Q1 2008. Nokia plans to finance the acquisition with a combination of cash and debt, and has secured a commitment on the debt. Nokia anticipates that the acquisition would not impact its share buy-backs under the current mandate, or its future cash distribution strategy in terms of dividends and share buybacks which is subject to the shareholders' approval. The acquisition is expected to be dilutive to Nokia earnings in 2008 and 2009 on a reported basis. However on a cash basis Nokia expects it to be only slightly dilutive in 2008 and slightly accretive in 2009.




Article Comments - Nokia nets navigation firm Navteq
Comments:??
*? You can enter [0] more charecters.
*Verify code:
?
?
Webinars

Seminars

Visit Asia Webinars to learn about the latest in technology and get practical design tips.

?
?
Back to Top