HERE, the Open Location Platform company, NavInfo Co., Ltd and Tencent Holdings Limited, have announced their intention to form a strategic partnership to develop and offer best-in-class location services for the Chinese market.
Aside from the planned strategic partnership, NavInfo, and Tencent, together with GIC, an investment firm, also intend to jointly acquire a 10% stake in HERE, thereby further broadening the company’s shareholder structure. The planned transaction would result in AUDI AG, BMW AG and Daimler AG reducing their indirect shareholding in HERE in equal measure. The transaction is expected to be completed in the first half of 2017, subject to regulatory approvals.
The planned strategic partnership between HERE, NavInfo and Tencent includes:
The planned formation of a joint venture in China:
HERE and NavInfo intend to form a 50/50 joint venture in China enabling location services for Chinese and global customers across a range of industries. Based on this cooperation, HERE, a provider of maps and location services in almost 200 countries, would extend its services to China making use of a wide range of NavInfo data and services.The planned joint venture is subject to regulatory approvals by the Chinese authorities.
Tencent utilizing HERE in its own products and services:
Tencent will explore the use of mapping and location platform services and tools from HERE in its own products and services both in China and internationally.
Product improvements and enhancements:
HERE and Tencent will work together to improve both companies’ products to deliver even better experiences to their customers and users and will explore new product and technology development opportunities.
The planned business collaboration between HERE and Tencent is subject to regulatory approvals in relevant jurisdictions.