The acquisition has been agreed by the board of directors from both companies and is now subject to customary closing conditions including regulatory approvals and NAVTEQ shareholders’ approval.
The deal is expected to be completed in early 2008 and Nokia has revealed that it plans to finance the move with a mixture of cash and debt. After completion NAVTEQ’s current map data business will continue to operate independently but will implement Nokia’s organizational structure.
Nokia president and CEO Olli-Pekka Kallasvuo said: "Location based services are one of the cornerstones of Nokia’s Internet services strategy. 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.”