Print 15 comment(s) - last by sxr7171.. on Oct 4 at 11:19 AM

Nokia just made one of the biggest acquisitions of the year.

Hot business deals were happening today in cold Helsinki, Finland. Nokia and GPS maker Navteq announced today a definitive agreement for the purchase of Navteq, valued at $8.1 billion.  Nokia will pay $78 in cash for each share of Navteq including outstanding options.

The acquisition is nearly finalized, having been approved by the board of directors of each company and now only awaits NAVTEQ shareholder approval.

The cell-phone GPS market has been rapidly growing, with many users looking to find directions on-the-go with their cell phones.  Nokia says that Navteq will provide the "best-in-world maps and navigation industry expertise, a strong customer base and an industry-leading map data and technology platform with the broadest geographical coverage."

Navteq was found in 1985 and is based out of Chicago, Illinois.  It has grown very large, with over 3,000 employees in 168 offices in 30 countries worldwide.  It posted 2006 revenues totaling $582 million USD.

Navteq owns, an interactive web service that provides traffic information and content to consumers.  The company also is a leader in providing mapping and GPS solutions to businesses and the government.

Nokia announced that Navteq will continue to support its existing customers.  Navteq will also add new capabilities to the Nokia Internet service.

Nokia hails itself as "the world's largest mobile device manufacturer" and claims to have over 900 million customers using its mobile offerings worldwide.

Nokia is looking to solidify its position as the mobile leader by expanding its mobile GPS offerings, including adding Nokia Maps, a GPS service to its new phone lines.  The Nokia N95 multimedia computer, which went on sale earlier this year, comes preloaded with the software and also features 2.6" QVGA screen, 160MB of internal memory, microSD slot for memory expansion, 3G, WiFi and Bluetooth.  An 8 GB version has also been released.

Olli-Pekka Kallasvuo, President and CEO of Nokia, hailed the acquisition as a major victory. "Location based services are one of the cornerstones of Nokia's Internet services strategy,” said Kallasvuo.” The acquisition of NAVTEQ is another step toward Nokia becoming a leading player in this space.  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. We also look forward to maintaining and enhancing the services and support provided to NAVTEQ's existing and future customers."

The move will likely strengthen Nokia in the long term, but may dilute earnings for Nokia in 2008 and 2009 -- a possible concern to investors.

Still, Jari Honko, an analyst at eQ Bank in Helsinki, sees the move as wise.  He called Navteq "the most significant player in its field" and added, "It makes a lot of sense.  This is one of the areas that should become extremely important in the future. ... Nokia could very well build one of its core services around it."

The acquisition comes at the same time as Nokia's recent launch of a new Apple iPhone-bashing campaign, as covered by DailyTech, which derides the Cupertino-firm's attempts to lock its phones to the AT&T network and "brick" phones that do not comply or have third party apps installed.

The acquisition marks one of the largest technology business acquisitions of the year.

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Ouch...DailyTech needs to improve in Geography
By sviola on 10/1/2007 2:31:00 PM , Rating: 5
Nokia, based out of Helsinki, Norway, hails itself as "the world's largest mobile device manufacturer" and claims to have over 900 million customers using its mobile offerings worldwide.

Helsinki is the capital of Finland, not Norway. Norway's capital is Oslo.

By JasonMick on 10/1/2007 2:36:32 PM , Rating: 2
Sorry, I had a fix in the works almost as soon as the story got posted but I knew some one would catch it =P

Maybe if I had Nokia Maps and a shiny new N95, I wouldn't have made that mistake!

Helsinki is a pretty cool city, BTW, perhaps the first major city to have no area that could be deemed a "slum". It also has the cool Kiasma Art Museum!

By Brandon Hill on 10/1/2007 2:41:18 PM , Rating: 3
For you John McClane fans out there:

Gail Wallens: Author of "Hostage Terrorist, Terrorist Hostage: A study in duality." Dr. Hasseldorf, what can we expect in the next few hours?
Dr. Hasseldorf: Well, Gail, by this time the hostages will be going through the early stages of the Helsinki Syndrome.
Harvey Johnson: As in Helsinki, Sweden.
Dr. Hasseldorf: Finland.

By Michael Hoffman on 10/1/2007 3:05:18 PM , Rating: 2
Die Hard FTW! :D

By Justin Case on 10/1/2007 3:25:40 PM , Rating: 2
Most people can't spot the second "layer" of that joke. The real name of the syndrome is "Stockholm syndrome", not "Helsinki syndrome". So the reporter (despite being ignorant about where Helsinki is) actually got the country right (Stockholm is in Sweden), while the "doctor" seems to know more about geography than about his real job.

By MikeO on 10/2/2007 2:53:59 AM , Rating: 2
DailyTech needs to improve in Geography

...and in meteorology :) It's been unsually warm for the past couple of weeks, it's not cold in here! Even if the temperatures were normal for autumn, it still wouldn't be cold :)

By DeepBlue1975 on 10/1/2007 2:25:57 PM , Rating: 2
If nokia pays that much for a GPS company, it means that "orientationware" is really big business now.
If "orientationware" is so big a business, it means we as a public desperately need directions to find what we are looking for.
And if we desperately need directions to find what we are looking for, it means... We are lost!!
So, Nokia is saying to all of their customers "You are frigging lost and I'll make big bucks out of you (evil laugh here)"

Therefore, lost people is just about people loosing money.


RE: hmmm
By sviola on 10/1/2007 2:33:55 PM , Rating: 2 have a really good imagination... :P

RE: hmmm
By Brandon Hill on 10/1/2007 2:37:32 PM , Rating: 2
I don't usually laugh out loud that much when I read stuff online, but I let out a Chris Matthews-esque "HA" when I read that :)

RE: hmmm
By RamarC on 10/3/2007 8:32:22 PM , Rating: 2
sounds like ebay's over-valued purchase if skype if you ask me. smells like a write-off by 2010... i hope nokia has the cash then to cover it.

Fast forward stratergy
By crystal clear on 10/2/2007 11:33:51 AM , Rating: 2
A simple analysis of this deal & its implications-

"Nokia understands it must move beyond being only a hardware manufacturer if it is to continue to grow," Gold said in an Oct. 1 analyst note. "Nokia's … initiative is its attempt to move into a services business with music, marketing services, search, payments and now, search."

The deal should allow Nokia to drive the sales of its high-end smartphones. "Nokia really needs to be in this space," he said. "They need more reasons for people to buy their phones. Ultimately, people will buy their phones based on the services around it.",1895,2190992,

Strange its comapnies like Google/M.S./ & others should be buying this company.

Nokia is diversifying.....

RE: Fast forward stratergy
By crystal clear on 10/2/2007 3:19:36 PM , Rating: 2
Nokia signs video deals with CNN, Sony, others
Tue Oct 2, 2007 8:36am ET

So now I can drive to Finland?
By Kuroyama on 10/1/2007 5:40:33 PM , Rating: 2
Hopefully Nokia adds directions from the US to Finland to the Navteq software, since Google's directions from the US to Europe no longer seem to work.

And I hope they put more money into updating the maps. Last time I visited Halifax I tried to get directions from the B&B I stayed in to Halifax and my Garmin navigator with Navteq maps directed me onto a heavily potholed overgrown dirt road. Needless to say after a few minutes I backed up and figured things out without the Navigator.

Good Job Nokia
By AlphaVirus on 10/3/2007 12:04:10 PM , Rating: 2
Nokia is always doing a good job looking out for the customers. They take big steps to remain in the good graces of the public and it pays off well for the consumer who buys their products.

Nokia is based in Espoo, Finland...
By sxr7171 on 10/4/2007 11:19:36 AM , Rating: 2
The press release itself says so.

"So if you want to save the planet, feel free to drive your Hummer. Just avoid the drive thru line at McDonalds." -- Michael Asher
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