TomTom, the Dutch supplier of digital maps and navigation technology have struggled in recent quarters due to decline in demand for navigation devices, once its core business.
Telematics business goes to Bridgestone Europe!
In a recent development, the company announced the sale of its Telematics business to Bridgestone Europe NV/SA at a price of €910 million and proposes to return the majority of the proceeds to its shareholders. In addition to this TomTom will request approval for the capital repayment to its shareholders at an Extraordinary General Meeting of Shareholders.
The sale of the Telematics business is expected to close by the end of the second quarter of 2019, followed by the capital repayment combined with a share consolidation to be executed in the third quarter of 2019.
€750 million will be distributed to shareholders through capital repayment!
Having said that, the Telematics purchase price is €910 million, of which €750 million will be distributed to shareholders by means of capital repayment, combined with a share consolidation. This capital repayment will not be subject to Dutch dividend withholding tax.
Notably, Barclays acted as exclusive financial advisor and Allen & Overy LLP as legal advisor to TomTom. Lazard acted as an independent advisor to the Supervisory Board.
“After a thorough review of strategic options, we have determined 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 have found our perfect match in TomTom Telematics,” said Paolo Ferrari, CEO and President of Bridgestone EMEA and Executive Vice President of Bridgestone Group.
“TomTom Telematics is the number one Telematics Service Provider in Europe, and we continue to grow our installed base of vehicles we service globally,” added Thomas Schmidt, Managing Director, TomTom Telematics.
Michelin and Pamplona Capital Management lost to Bridgestone!
Last year, French tyre manufacturing company Michelin and British firm Pamplona Capital Management expressed their interest in buying the Telematics business of TomTom.
For the uninitiated, the TomTom Telematics is one of the world’s leading telematics solution providers having above 785,000 subscriptions worldwide. It operates in the sector of fleet management, vehicle telematics and connected car services.
To enhance the fuel efficiency and vehicular performance, it provides software and service solution WEBFLEET for small to large businesses. Furthermore, TomTom Telematics offers services for companies ranging from insurance and rental ones to car importers.
Collaboration with DENSO!
Back in CES 2019, TomTom announced the collaboration with DENSO for autonomous vehicles. This collab aims to achieve Level 2 automation which will work on highways and other major urban roads using TomTom’s end to end mapping system.
Bridgestone corporation!
Bridgestone Corporation, headquartered in Tokyo, is the world’s largest tire and rubber company. In addition to tires, it also manufactures a broad range of diversified products, which include industrial rubber and chemical products and sporting goods. Its products are sold in over 150 nations and territories around the world.
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