Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
?
EE Times-Asia > Embedded
?
?
Embedded??

Garmin bids for Tele Atlas, trumps Tom Tom

Posted: 06 Nov 2007 ?? ?Print Version ?Bookmark and Share

Keywords:navigation devices? digital map provider? unsolicited bid? acquisition?

A bidding war for digital map provider Tele Atlas NV has erupted with an unsolicited bid from navigation device maker Garmin Ltd. Garmin offered $3.3 billion for the Dutch group, trumping an agreed bid from rival European market leader for navigation devices TomTom NV.

The move follows the recent offer by Finnish mobile phone giant Nokia to buy Navteq, Tele Atlas' only major competitor.

Both TomTom and Nokia plan to tightly integrate the maps into the design of their navigation devices and phones.

TomTom triggered the consolidation in the sector in July, which in turn led to Nokia's move early last month.

Garmin's offer is about $35 for each share of Tele Atlas, 15 percent higher than TomTom's offer of about $31 a share. Net of the cash on Tele Atlas' balance sheet, Garmin's offer is worth about about $3 billion and TomTom's about $2.6 billion.

Garmin CEO Min Kao said: "Given the high growth and rapid change the navigation market has undergone to date, we feel that now is the right time for Garmin to move ahead with this proposed combination with Tele Atlas. Together, we believe we can create the best available mapping solutions for our customers around the world. We also intend to make Tele Atlas content available to the entire navigation market on a non-discriminatory basis, promoting healthy competition."

Kao suggested Garmin's larger size meant its offer would allow Tele Atlas more opportunity for growth.

The global market for portable navigation devices is estimated to be worth $4.2 billion this year and to grow to $12.8 billion by 2010, according to market research firm iSuppli.

- John Walko
EE Times Europe




Article Comments - Garmin bids for Tele Atlas, trumps T...
Comments:??
*? You can enter [0] more charecters.
*Verify code:
?
?
Webinars

Seminars

Visit Asia Webinars to learn about the latest in technology and get practical design tips.

?
?
Back to Top