Communications and information technology company Nokia has signed a deal to sell its HERE digital mapping and location services unit to a consortium comprising Audi, BMW Group and Daimler in a deal worth €2.8bn.
The transaction, expected to close between January and March next year following customary closing conditions and regulatory approvals.
HERE is designing a location cloud based on the data generated by vehicles, devices and infrastructure to deliver real-time, predictive and personalized location services.
The company supplies mapping data to cars in North America and Europe which is used in dash navigation systems.
It also claims that it is designing a precise and accurate mapping and services for automated driving.
Bakced by mobile networks, connected and self-driving cars could operate intelligently by making a recalculation of the route after an event of traffic jam or road mishap is transmitted to the system.
Nokia president and CEO Rajeev Suri said: "With this step we complete the latest stage of Nokia's transformation.
"We integrated the former Nokia Siemens Networks, divested our Devices & Services business, and have now reached agreement on a transaction for HERE that we believe is the best path forward for our shareholders, as well as the customers and employees of HERE.
"Going forward, we will focus on our planned combination with Alcatel-Lucent. Once that is complete, Nokia will be a renewed company, with a world-leading network technology and services business, as well as the licensing and innovation engine of Nokia Technologies."
With this, Nokia estimates to get net proceeds of around €2.5bn, for the purchaser would be compensated for certain defined liabilities of HERE that currently stands at below €300m.
The company expects to book a gain on the sale and a related release of cumulative foreign exchange translation differences totaling around €1bn as a result of the transaction.
HERE president Sean Fernback said: "I believe today's announcement is a very good outcome for HERE, its customers and employees. The new ownership structure of HERE will allow us to accelerate our strategy, further scale our business and fulfill our intent to become the leading location cloud company across industries."
Nokia was earlier intent upon keeping some patents under its umbrella that came in way of the automobile majors' bid to seal a deal with the company for purchasing the HERE map operations, Reuters reported.
In April 2015, Nokia declared review of strategic options for HERE against the backdrop of its proposed combination with Alcatel-Lucent.
