Mapping, traffic information and satnav company TomTom is selling its Telematics business to the European division of Bridgestone, saying it’ll allow it to concentrate on maps, navigation and information services.
More than three quarters of the €910 million (£793 million) raised from the sale will be returned to shareholders, with the rest invested in future services.
TomTom says the deal allows the Telematics business to accelerate its growth trajectory and TomTom to become a more “focused and agile” company, “shaping the future of driving with highly accurate maps, navigation software and real-time traffic information and services”.
“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,” commented Harold Goddijn, CEO, TomTom. “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.”
“Our companies’ complementary assets and capabilities will create a fleet solutions powerhouse, and further strengthen Bridgestone’s digital technology arm,” said Bridgestone’s European head Paolo Ferrari. “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. We recognise and respect the talent and skills of the TomTom Telematics’ management team and its 670 employees. It’s our intention to foster and grow the business and support its current plans.”