Nokia To Sell HERE To Automotive Consortium At Enterprise Value Of EUR2.8 Bln

(RTTNews) - Finnish network equipment maker Nokia Corp. (NOK) Monday announced an agreement to sell its HERE digital mapping and location services business to a consortium of leading automotive companies, comprising AUDI AG, BMW Group and Daimler AG.

The transaction values HERE at an enterprise value of 2.8 billion euros with a normalized level of working capital. The deal is expected to close in the first quarter of 2016.

Upon closing, Nokia estimates that it will receive net proceeds of slightly above 2.5 billion euros, as the purchaser will be compensated for certain defined liabilities of HERE currently expected to be slightly below 300 million euros.

Nokia expects to book a gain on the sale and a related release of cumulative foreign exchange translation differences totaling around1 billion euros as a result of the transaction.

In April, Nokia had announced a review of strategic options for HERE in the light of its proposed combination with Alcatel-Lucent. The announcement of this sale to the consortium concludes that strategic review process.

When the HERE transaction is closed, Nokia will consist of two businesses: Nokia Networks and Nokia Technologies.