Featured Articles

TSMC: Volume production of 16nm FinFET in 2H 2015

TSMC: Volume production of 16nm FinFET in 2H 2015

TSMC has announced that it will begin volume production of 16nm FinFET products in the second half of 2015, in late…

More...
AMD misses earnings targets, announces layoffs

AMD misses earnings targets, announces layoffs

AMD has missed earnings targets and is planning a substantial job cuts. The company reported quarterly earnings yesterday and the street is…

More...
Did Google botch the Nexus 6 and Nexus 9?

Did Google botch the Nexus 6 and Nexus 9?

As expected, Google has finally released the eagerly awaited Nexus 6 phablet and its first 64-bit device, the Nexus 9 tablet.

More...
Gainward GTX 970 Phantom previewed

Gainward GTX 970 Phantom previewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
EVGA GTX 970 SC ACX 2.0 reviewed

EVGA GTX 970 SC ACX 2.0 reviewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

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

 

Facebook activity

Latest Commented Articles

Recent Comments