Nokia to buy Navteq for $8.1 billion

by admin October 1, 2007 at 7:50 pm

No. 1 cell phone maker Nokia on Monday said it plans to buy digital-map supplier Navteq for $8.1 billion in one of its largest acquisitions ever.

The Finnish company says it will spend $78 a share for Navteq, financed with cash and debt. Nokia had 8.3 billion euros ($11.8 billion) in cash and other liquid assets as of the end of June.

Already selling more cell phones around the globe than any other handset maker, Nokia has been aiming to add software and services like music, games and navigation to its business. In addition to generating new revenue streams, it sees these endeavors as ways to help differentiate its products from its competitors’ handsets.

Earlier this year at the 3GSM trade show in Barcelona, Nokia introduced its first GPS-enabled phone, the 6110 Navigator. The company also launched a navigation service that allows users to download maps.

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