Start the conversation
From Staff Reports
The proposed deal at $78 a share would be Finland-based Nokia's biggest purchase, and it follows the heels of Nokia's acquisition of mobile-advertiser Enpocket. The Navteq purchase is a clear shot at Apple Inc. (AAPL), whose iPhone comes equipped with mapping and navigation provided by Google Inc. (GOOG). It also puts pressure on GPS-system-maker Garmin Ltd. (GRMN), the high-flier whose shares were pounded by investors who were disappointed it wasn't a bidder for Navteq.
Navteq provides digital map information for automobile navigation systems, mobile phones and devices and Web sites. It also owns Traffic.com, an interactive Web site that gives users up-to-the-minute traffic information in their area. Last year, the company pocketed revenues of $582 million, according to Nokia's press release.
"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," Olli-Pekka Kallasvuo, Nokia's president and CEO said in a statement. "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."
The deal has yet to be approved by U.S. regulators and Navteq shareholders. It isn't expected to be finalized until early 2008.