Nokia acquires Navteq
Posted October 2nd, 2007 by Mihnea BoiangiuThe latest transaction on the technology market, comes from the Finnish company Nokia. The mobile producer has announced officially that is going to buy Navteq, a company specialized in GPS systems, and a provider of mapping data. The transaction of 8.1 billion $ was confirmed by Nokia’s officials. The high price is reflecting Navteq’s growing as a company. The shares have double their value since May, showing the increasing interest in GPS devices.
It seems the Giant Nokia prepares for battle with Apple and Google, after last month it unveiled new online services like music downloads and playing online games. Acquiring Navteq Corp., a Chicago-based company, Nokia intends to strengthen its position on the market. The direct competitor is iPhone which provides a Map service, music downloads and internet surfing.
Despite the acquisition, Navteq will further continue to work for its clients, but will be reorganized like a Nokia Group. Nokia’s move will not affect the company’s share buybacks or future dividends. The transaction is expect to finalize in the first quarter of 2008.
