Nokia on Monday said it was in negotiations to sell its automotive business to the former head of its enhancements and automotive units and Dusseldorf-based private equity firm Equity Partners.
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Current personnel are expected to transfer to the new company if the deal goes ahead.
“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,” it said in a statement. “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 Nokia’s devices unit.
Olosu said: ” 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.”
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By GlobalDataThe parties expect the deal to close during the first half of this year dependent on their ability to successfully conclude negotiations, the outcome of the works council consultations, and satisfaction of customary closing conditions, including regulatory approvals.
