Nokia announce the acquisition of Navteq
Date: Monday, October 01 @ 20:38:24 UTC
Just as I was completing the competition to see who would be involved in the next company take over in the SatNav industry I was piped to the post by the announcement today that Nokia is to buy Navteq. This somewhat messes up an article I had in preparation about the TomTom take over of Tele Atlas.
The purchase price values Navteq at US $8.1 billion. The offering is a 34% premium on the Navteq share price from last month. Interestingly unlike the TomTom/Tele Atlas announcement, Navteq shares have fallen slightly today by 2%.
This announcement now means that we no longer have any independent global mapping companies. It also shows that both TomTom and Nokia have serious visions for the future in navigation and Location Based Services.
Last month there was a lot of talk and speculation at the Canalys Navigation forum where the leaders of the SatNav industry met. The keynote from the Canalys president Steve Brazier speculated on who could put in a bid for who with a graph of the Market Capitalisation of the relevant companies. Nokia were 4th on the list of potential buyers after Microsoft, Google and HP. Whereas in the GPS sector Navteq are second in MC to Garmin. In a poll of the attendees the consensus of opinion was that Garmin would buy Navteq. Nokia didnt come into the equation... We were all wrong.
My money was on Google acquiring Navteq. I was wrong as well.
I suppose in the end it makes a lot of sense for Nokia to buy into this market as they can have the authority to produce total solutions and then distribute them World-Wide. Once again we see a bold move being made which is still reliant on the Wireless Carriers to make or break the uptake of LBS in the mass market.
I was unable to contact either Navteq or Nokia today for comments, but I will be seeing some senior Navteq Execs at CTIA in a few weeks time. Where I will be able to quiz them about the deal and what it will mean to the users.
Click here to read more including the full Navteq/Nokia press release...
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