BMW, Audi and Mercedes buy Nokia’s HERE mapping for €2.5bn
BMW, Audi and Mercedes-Benz have agreed to acquire Nokia’s HERE mapping business for €2.5 billion, securing a key asset for future autonomous and connected car development.
BMW, Audi and Mercedes-Benz have reached a deal to buy Nokia’s HERE mapping division for €2.5 billion, securing a critical technology for their future autonomous and connected vehicles. The three German luxury manufacturers will each hold an equal stake in HERE, which has supplied digital maps and location services to much of the automotive sector.
The €2.5 billion deal, announced by Nokia, values HERE at €2.8 billion, with the remaining €300 million covering liabilities. The transaction is expected to close in the first quarter of 2016, pending regulatory approval. By acquiring HERE, the manufacturers aim to ensure that advanced mapping and navigation data stays under automotive industry control, rather than falling into the hands of Silicon Valley firms such as Google, Uber or Apple.
HERE’s mapping platform is already widely used by carmakers and is regarded as a foundation for future driver-assistance and self-driving systems. The service provides high-resolution, real-time maps that can support features such as dynamic rerouting, hazard warnings and vehicle-to-vehicle communication. These capabilities are considered essential for the next generation of connected and autonomous vehicles.
Why mapping matters for autonomous driving
Control of mapping data is seen as a strategic asset as carmakers move towards autonomous driving. Detailed, constantly updated maps are required for vehicles to safely navigate complex environments. By owning HERE, BMW, Audi and Mercedes-Benz can tailor the technology to their needs and protect sensitive data from third-party tech firms.
The acquisition also positions the German manufacturers to compete with technology companies developing their own autonomous driving platforms. It allows them to maintain direct relationships with customers and retain control over the digital ecosystem in their vehicles.
Next steps for HERE and the new owners
Nokia will continue to focus on its network infrastructure and technology businesses after the sale. BMW, Audi and Mercedes-Benz have indicated that HERE will remain open to other automakers and industries, aiming to keep the platform independent and widely adopted.
The deal is expected to close in early 2016, subject to regulatory approvals. Industry observers will be watching to see if other carmakers or suppliers join the consortium or seek partnerships with HERE in the future. For further coverage of the completed acquisition, see Audi, BMW and Mercedes complete €2.55bn purchase of Nokia’s HERE mapping business.
