HERE mapping business is sold to German automakers for €2.8bn.
Nokia has agreed to sell its HERE digital mapping and location services business to a German consortium of automotive firms for €2.8bn.
The three German automakers, Audi, BMW Group and Daimler, will each hold an equal stake in the business.
The transaction, which is expected to be completed in the first quarter of next year, values HERE at an enterprise value of €2.8bn with a normalised level of working capital.
After completion, Nokia expects to receive net proceeds of slightly more than €2.5bn, as the transaction requires the consortium to compensate for several defined liabilities of the business currently expected to be below €300m.
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."
HERE is developing a location cloud that leverages the data generated by vehicles, devices and infrastructure for providing real-time, predictive and personalised location services.
The transaction is part of Nokia’s transformation strategy. Upon completion of the deal, the company will have two businesses, Nokia Networks and Nokia Technologies.
Nokia Networks will continue to provide broadband infrastructure software and services, while Nokia Technologies will deliver advanced technology development and licensing.
Nokia’s planned combination with Alcatel-Lucent is also expected to be completed in the first half of 2016, subject to regulatory approvals.
The company said it will create a new leader in next generation technology and services for an IP connected world.