Nokia Buys Mapmaker Navteq for $8.1 Billion

October 2nd, 2007

Nokia announced one of the largest mobile industry acquisitions of the year on Monday. The mobile phone giant agreed to buy Navteq, a company that makes maps used in car navigation equipment, for $8.1 billion in cash.Navteq generated $582 million in revenues in 2006 and is a major player in the quickly growing navigation area. With location-based services becoming popular in mobile communications devices, Nokia is betting the industry is poised for even more growth.

“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,” Nokia President and CEO Olli-Pekka Kallasvuo said in a statement. Joining forces with Navteq will help Nokia develop context and geographical information services more quickly, he added.

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