GIC, Tencent back location services company HERE

The investment will be used to expand the Chicago-headquartered company’s location and mapping services to the Chinese automotive market.

Singapore sovereign wealth fund GIC Private Limited, Chinese mobile internet group Tencent Holdings and NavInfo, a mapping company backed by Tencent and Intel, have teamed up to acquire a 10 percent stake in Chicago-based location services company HERE.

Financial details of the transaction were not disclosed but the investment would result in automotive companies AUDI, BMW and Daimler reducing their indirect shareholding in HERE, according to a statement. The three companies bought HERE from Nokia for $3.1 billion back in 2015.

“As a long-term value investor, we are confident HERE is well-positioned to extend its success in automotive space to areas of Internet of Things, smart cities and fleet management,” chief investment officer at GIC Private Equity Choo Yong Cheen commented. “We believe this strategic collaboration with NavInfo and Tencent will generate good momentum for its global expansion and its development of HAD (Highly automated driving) Map.”

Along with the investment, GIC, Tencent and NavInfo will also form a strategic partnership to develop location services for the Chinese market. HERE is expected to extend its services to China by making use of NavInfo’s data and services including in-car experiences, autonomous driving solutions and asset tracking.

GIC could be reached for further comment on the transaction by press time.

GIC’s investment in HERE comes less than month after it joined a consortium of investors led by san Francisco-based private equity firm Golden Gate Capital to acquire Virginia-headquartered IT company Neustar, in a deal valued at about $2.9 billion.

The transaction is expected to be completed in the first half of 2017.