ESPOO, Finland, January 28 /PRNewswire-FirstCall/ -- Nokia today announced that the company is in negotiations to divest its Automotive Business to the former head of Nokia's Enhancements unit and the Automotive Business, and Equity Partners GmbH.
If the negotiations are successful, the transaction will enable employment for the personnel in the current Automotive entity at the new company. Nokia will start consultations with the works council about the transfer of the Automotive Business including the transfer of the affected employees to the new company.
"We are happy to negotiate with Razvan Olosu and Equity Partners GmbH about selling our Automotive business to them. If successful, this deal will enable employment for the affected employees. It would also allow for smooth continuation of the business and customer relationships in the new company. Razvan Olosu has an established position in the Automotive Business, and we are confident that with his experience and the backing of his financial partner, the automotive business will continue to be in good hands," said Heikki Tenhunen, head of Enhancements at Devices unit, Nokia.
Razvan Olosu commented: "I cannot imagine a better start as an entrepreneur than having on the one side a team of trusted, talented, committed and hard-working people I have worked and been friends with for many years, and on the other side Nokia's support for this endeavour. We plan to strengthen our main operations in Germany and the USA, and increase the focus and dedication in serving our customers in the automotive industry. I expect the newly formed company to continue to play a leading role in the growing market for automotive communications and multimedia solutions, and position itself at the forefront of innovation in the industry. With Equity Partners we found a strong and experienced partner willing to support us in achieving our long-term goals."
The parties anticipate that the deal could be closed during the first half of 2008. Closing of the transaction will depend on the parties ability to successfully conclude the negotiations, the outcome of the works council consultations, and satisfaction of customary closing conditions, including regulatory approvals.
About Nokia
Nokia is the world leader in mobility, driving the transformation and growth of the converging Internet and communications industries. Nokia makes a wide range of mobile devices and provides people with experiences in music, navigation, video, television, imaging, games and business mobility through these devices. Nokia also provides equipment, solutions and services for communications networks.
About Equity Partners
Equity Partners is a Private Equity Firm based in Dusseldorf with EUR 1,1 bn Assets under management that invests into companies in Germany and Private Equity Funds globally. The firm invests into promising lower mid-market businesses (Mittelstand) in Germany, generally partnering with the management of the firm. Following a long-term strategy Equity Partners supports their companies to stay or become the leader in their respective markets.