TomTom offered 21.25 euros per Tele Atlas share, Den Bosch, Netherlands-based Tele Atlas said in a statement. The bid is 28 percent more than the closing price on July 20.
Tele Atlas is the world’s second-biggest producer of maps and will allow TomTom to deliver real-time updates on routes to its more than 10 million navigation devices, the companies said. TomTom’s stock has doubled in the past two years on demand for its $280 products that stick to the dashboard and navigate drivers to their destination.
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 and to current and future customers, both in and outside the group.
Commenting on the proposed Offer, Harold Goddijn, Chief Executive Officer of TomTom said: “We think that the navigation industry is going to change dramatically in the next few years as end customers will give ever increasing importance to intelligent routing and continuously updated maps. By integrating customer feedback into the Tele Atlas map manufacturing process, we will be able to considerably enhance the user experience and further increase all Tele Atlas and all TomTom’s customers’ satisfaction. We will supply all companies wanting to rely on the improved maps for their PNDs, wireless handsets, in-car systems, internet services and in-house routing services.”
Source: Bloomberg – TomTom press release