Nokia agrees to sell its map service to German motoring giants for $3bn

Nokia has agreed to sell its Here Maps service for $3.07bn to a consortium of leading German car companies, following speculation that Uber was interested in purchasing the in-car navigation system.

The consortium essentially represents the entire German car industry and is comprised of Mercedes' owner Daimler, BMW, and Audi - which is a VW subsidiary. The deal will undoubtedly strengthen Nokia’s position as a leading in-car navigation service which the company says was in four out of every five new vehicles sold with built-in navigation.

While Here’s popularity is not as dominant as a mobile mapping app; its popularity among car manufactures has resulted in the service being used by new owners VW, Daimler and Mercedes as well as many other manufacturers, including Ford, Toyota, and aftermarket GPS companies like Garmin.

Chairman of Daimler, Dieter Zetsche, said that the consortium wanted to “to secure the independence of this central service for all vehicle manufacturers, suppliers and customers in other industries”.

The deal is expected to close in the first quarter of 2016.

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