Tomtom moves focus to driverless technology as it sells telematics unit for €910m
Satnav maker Tomtom will sell its telematics business unit to multinational Bridgestone as it looks to move more focus towards develop driverless car technologies.
The €910m (£801m) deal sees the Japanese tyre and rubber company take over a business which helps firms track their fleets and manage efficiency.
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Tomtom said it would return the lion’s share of the proceeds to shareholders, reserving €750m for a capital repayment and share consolidation.
The move will allow the Dutch firm it to focus more efforts on its high-definition maps, accurate to within centimetres, which are used by manufacturers developing driverless cars.
“After a thorough review of strategic options, we have determined that the sale of telematics to Bridgestone is in the best interest of both telematics and our core location technology business,” said Tomtom chief executive Harold Goddijn.
“We will continue to invest in our innovative map-making system, enabling faster map updates while lowering operational costs, paving the road towards autonomous driving.”
Bridgestone’s Europe, Middle East and Africa (Emea) chief executive Paolo Ferrari said the deal complements its assets and capabilities, creating a strong fleet management business.
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“We are now well-positioned in Emea to enhance our core tyre business, accelerate our data-driven business, expand our fleet customer base and seize fast-growing, profitable opportunities in the automotive mobility industry,” he said.
Barclays and Allen & Overy LLP advised TomTom and Lazard advised its board.