Featured Articles

IHS teardown reveals Galaxy S5 BOM

IHS teardown reveals Galaxy S5 BOM

Research firm IHS got hold of Samsung’s new flagship smartphone and took it apart to the last bolt to figure out…

More...
Galaxy S5, HTC One M8 available selling well

Galaxy S5, HTC One M8 available selling well

Samsung’s Galaxy S5 has finally gone on sale and it can be yours for €699, which is quite a lot of…

More...
Intel lists Haswell refresh parts

Intel lists Haswell refresh parts

Intel has added a load of Haswell refresh parts to its official price list and there really aren’t any surprises to…

More...
Respawn confirms Titanfall DLC for May

Respawn confirms Titanfall DLC for May

During his appearance at PAX East panel and confirmed on Twitter, Titanfall developer Respawn confirmed that the first DLC pack for…

More...
KFA2 GTX 780 Ti Hall Of Fame reviewed

KFA2 GTX 780 Ti Hall Of Fame reviewed

KFA2 gained a lot of overclocking experience with the GTX 780 Hall of Fame (HOF), which we had a chance to…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Tuesday, 02 October 2007 13:55

Nokia makes offer for NAVTEQ

Written by David Stellmack

Image

Deal worth $8.1 billion


 

Cell phone manufacturer Nokia Corporation has made a takeover offer to acquire NAVTEQ Corporation, a U.S. provider of digital map information for automotive navigation systems, mobile navigation devices and Internet-based mapping applications, for $8.1 billion.

If the offer is consummated it would give Nokia a significant stake in the navigation business, a rapidly growing part of the technology industry.  The takeover by Nokia will put it in direct competition with Internet providers, Google, Inc. and Yahoo! Inc., who both currently provide mapping tools.

Industry analysts had expected that NAVTEQ would be acquired by Garmin Ltd., a worldwide provider of navigation, communications and information devices, the majority of which are global positioning system (GPS) technology enabled. NAVTEQ indicated, however, that Nokia had made the most lucrative offer, which was reported to be valued at 8.6 times NAVTEQ’s 2008 sales and 24.5 times NAVTEQ’s 2008 EBITDA earnings.  In comparison, a buyout was proposed in July 2007 by TomTom NV, the largest manufacturer of automobile navigation devices, to acquire NAVTEQ’s rival, Tele Atlas, N.V., for only 5.2 times Tele Atlas’s 2008 sales and 20.9 times Tele Atlas’s EBITDA.

Nokia indicated it would finance nearly half of the deal with cash and the remainder with debt. Industry analysts predicted that the acquisition would be good for Nokia in the long term, but also said that Nokia was paying far too much for NAVTEQ at this time.  Nokia acquired Gate5, a German software firm, last year as it tested the waters for navigation technology. Gate5 uses map data from NAVTEQ and Tele Atlas.

Last modified on Tuesday, 02 October 2007 14:09

David Stellmack

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

To be able to post comments please log-in with Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments