Nokia acquires Navteq

October 1, 2007

Nokia, the mobile phone manufacturer based in Nokia, Finland, has negotiated the takeover of Chicago, United States Geographic Information Systems software development company Navteq for US$8.1 billion.

Nokia are paying $78 per share in Navteq, who employs 3,000 people and operates 168 offices spread across 20 countries. Nokia, meanwhile, is the world's largest mobile phone manufacturer.

The price comes in at only three cents a share more than current stock market prices, but these prices have recently risen steeply after rumours surfaced that the company may be subject to a takeover deal. However, share prices fell 1.7% after the deal was confirmed as fact.

“Location based services are one of the cornerstones of Nokia's Internet services strategy. 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,” said a statement by Olli-Pekka Kallasvuo, Nokia's chief executive. Meanwhile, MarketWatch had a slightly different take on events, using the headline “Nokia bets men will spend anything to avoid asking directions.”