Featured Articles

5th Generation Broadwell 14nm family comes in three lines

5th Generation Broadwell 14nm family comes in three lines

Intel's 5th Core processor family, codenamed Broadwell, will launch in three lines for the mobile segment. We are talking about upcoming…

More...
Broadwell Chromebooks coming in late Q1 2015

Broadwell Chromebooks coming in late Q1 2015

Google's Chromebook OS should be updating automatically every six weeks, but Intel doesn't come close with its hardware refresh schedule.

More...
New round of Nexus phone rumour kicks off

New round of Nexus phone rumour kicks off

Rumours involving upcoming Nexus devices are nothing uncommon, but this year there is a fair bit of confusion, especially on the…

More...
Nvidia officially launches the 8-inch Shield Tablet

Nvidia officially launches the 8-inch Shield Tablet

As expected and reported earlier, Nvidia has now officially announced its newest Shield device, the new 8-inch Shield Tablet. While the…

More...
Aerocool Dead Silence reviewed

Aerocool Dead Silence reviewed

Aerocool is well known for its gamer cases with aggressive styling. However, the Dead Silence chassis offers consumers a new choice,…

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