TomTom is buying Tele Atlas!!!
Date: Monday, July 23 @ 09:24:25 UTC
TomTom announced their Q2 results today, and this was pretty much the same old boring detail Revenue up 37%, Net Profit up 81% everything we have come to expect.
There was also an announcement about the operational highlights: New GO range launched, MapShare announced, Venture with Vodafone for traffic...
Then tucked away at the bottom is: TomTom are to buy Tele Atlas!!!
Tele Atlas N.V. acquisition?
• Today we announce that TomTom N.V. intends to make a cash offer of € 21.25 per ordinary share for Tele Atlas N.V. We refer to a joint press release for detailed information.
I checked the date to make sure that it was not April the first, and sure enough it isn't. So it looks like TomTom are attempting to fully control the entire production and value chain for the GPS Industry.
This is a very bold move and one that I am not sure is good for the SatNav market in general. It does of course give TomTom the opportunity to have full control of the entire mapping process from error reporting through to ensuring map data construction incorporates all their feedback. On the other hand if I was a GPS Manufacturer I would be reluctant to be sourcing my map data from one of my direct competitors. This may of course be advantageous for Navteq and we may see a number of GPS developers turn to Navteq for their map data if this deal goes through.
Click here to read more...
Click here to discuss and air your views of the deal...