Nokia to buy navigation software maker Navteq for $8.1 billion

01 October 2007

Mumbai: Nokia Oyj, the world''s biggest mobile-phone company, has agreed to buy navigation software maker Navteq Corporation for $8.1 billion.

The acquisition of Chicago-based Navteq would give Nokia access to digital maps of 69 countries and help it compete with TomTom NV in the market for navigation devices.

Espoo, Finland-based Nokia will pay $78 for each share of Navteq, the largest maker of maps used in car-navigation equipment, the companies said in a statement.

With a market value of $7.61 billion, Navteq would be one of Nokia''s largest-ever corporate acquisitions, reports quoting sources said report said.

The boards of both companies have approved the purchase, Nokia said, adding, it would finance the deal with cash and debt. It had in cash and other liquid assets 8.3 billion euros at end-June.

Navteq has been seen as a takeover target since TomTom, the world''s top maker of car navigation devices, offered 1.8 billion euros ($2.55 billion) in July for Navteq''s only big rival, Tele Atlas.