World News: Nokia confirms agreement to acquire NAVTEQ

World News: Nokia confirms agreement to acquire NAVTEQ

Nokia and NAVTEQ have announced a definitive agreement for Nokia to acquire NAVTEQ for US$8.1 billion.

The acquisition has been approved by the board of directors of each company, and is subject to customary closing conditions including regulatory approvals and NAVTEQ shareholders' approval.

More than 900 million people around the world use Nokia mobile devices. Driven by Internet and digital convergence, Nokia is expanding its offering to include areas such as entertainment, communities and location based services.

The Nokia-NAVTEQ deal comes less than three months after TomTom agreed to acquire Tele Atlas in a €2 billion transaction that has yet to receive official approval from the European Commission.

“Location based services are one of the cornerstones of Nokia's Internet services strategy,” said Olli-Pekka Kallasvuo, president & CEO of Nokia. “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.”

According to NAVTEQ’s chairman of the board, Christopher Galvin, the company approached other potential purchasers about their possible interest in NAVTEQ, before determining that Nokia’s proposal was the best opportunity and represented the best value for NAVTEQ stockholders.

On completion of the transaction, NAVTEQ's current map data business will become part of the Nokia Group but will remain operationally independent.

The acquisition is expected to close in the first quarter of 2008.

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