Home News Automobile companies willing to pay $3.3 billion for Nokia’s HERE Maps

Automobile companies willing to pay $3.3 billion for Nokia’s HERE Maps

The software will be playing an important role in the automobile segment, and it has also led to concerns about the security of these Software from hacks. Keeping these things in mind, automobile leaders like Mercedes are looking into the possibility of acquiring Nokia’s high definition mapping systems.

It is not clear how Nokia Here will fare, but it is possible that it could be bought by German car makers. Nokia Here mapping and navigation technology has evoked interest in automobile giants for one major reason- Security.

Interacting with investors on Thursday, Dieter Zetsche, CEO Daimler acknowledged that the company is interested to acquire Nokia’s mapping business. He expressed concerns that the platform could be vulnerable to hacking attempts and talked about the need to make the platform more secure.

Nokia Here may not be as famous as Google Maps or Apple Maps but is one of the prominent companies offering mapping services to the industry. Nokia Here powers navigation systems in four out of five cars on the road. It provides up to date maps of 196 countries and also live traffic information in 41 countries. Nokia Here has been licensed to some companies like Garmin, Oracle, and Amazon.

Nokia informed that its Mapping business reported a 25% increase in sales in the first quarter of 2015 and reached 261 million euros. In the quarter ending March 31, Nokia’s Here technology was licensed by car makers for 3.6 million new vehicles. It represented a huge surge by 29% as compared to the previous year for the same period. Nokia Here’s profit also rose by 21% and stood at 194 million euros.

However, Nokia is currently reviewing its mapping business. The emphasis of the company today is on patent licensing and networks technology, and it is not sure if Nokia Here will fit in its latest endeavors. In fact in May Nokia CEO Rajeev Suri stopped short of saying that he’d sell Here He, however, said that he would do it if he got the right price for the mapping division.

Reuters reported that a conglomerate of carmakers has shown interest to acquire Nokia Here, and it includes Audi, BMW, and Volkswagen. They may be ready to pay as much as $3.3 billion.



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