Digital mapping services provider Tele Atlas has indicated it will support a higher takeover bid from portable navigation device maker Garmin, if TomTom does not raise its earlier offer. Garmin has said it intends to make an offer of EUR 24.50 per share for the Dutch company, beating TomTom’s agreed offer of EUR 21.25 per share. Under the TomTom agreement, if Tele Atlas receives a superior proposal, TomTom has a right to match that within five business days. If TomTom chooses not to match the higher bid, then Tele Atlas intends to terminate the TomTom agreement and recommend shareholders accept the Garmin bid.
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Time to pimp your ride as mobile manufacturer giant Nokia has launched Nokia 500 Auto Navigation, its first handsfree personal navigation device. This further supports the forecast we’ve covered last May that personal navigation is the next the big thing in the mobile industry.
Aside from personal navigation feature, this new in-car navigation equipment empowers users to stay connected, make quality handsfree calls, and even entertain passengers to make any road trip fun.
“The Nokia 500 Auto Navigation is an expansion of our extensive enhancements portfolio. Our solutions are tightly integrated with our mobile devices, allowing users to enjoy quality handsfree communication with their phonebook, music and competitive navigation,” said Nokia Automotive director Marcus Stahl, in a press release.
A more exciting part of this whole personal navigation domination is that established GPS companies like TomTom and Garmin are currently developing mobile phones with GPS devices. If the war escalates, expect the wireless and telematics to merge and become a one big hypercompetitive industry.
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Portable navigation device maker TomTom has made a bid of EUR 2 billion to acquire mapping data provider Tele Atlas. TomTom is offering EUR 21.25 per share for Tele Atlas, a 32 percent premium on its average closing share price over the last three months. Tele Atlas’ board has agreed to the offer and holders of 17.4 percent of Tele Atlas shares have agreed to tender their stock already. After the merger Tele Atlas will continue its business as a separate unit in the combined group specialising in developing and licensing digital map products for customers both in and outside the group. Its shares will be de-listed, but no major staff reductions are expected. The total purchase price of EUR 2 billion includes around EUR 200 million cash and is worth around 28 times Tele Atlas’ estimated adjusted EBITDA for 2007 of EUR 65 million. The deal is conditional on at least 80 percent of Tele Atlas shares tendered to TomTom as well as shareholder and regulatory approval.
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TomTom has agreed to work with Vodafone UK on developing a new traffic information system. The project uses in-house technology from TomTom. It collects information from the Vodafone UK network on the location of mobile phones to provide real-time information on the speed and direction of cars traveling on all major roads across the UK. This helps drivers using TomTom devices better plan their route. The service is expected to launch in the first half of 2008, when further details will be made available. The system will also be available for road authorities and businesses, who may use it for dynamic traffic control management and improved fleet management. TomTom aims to expand the service throughout Europe.
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Tele Atlas waits for higher bid from TomTom
