TomTom Moves to Buy Map Provider Tele Atlas
In a move that has major implications for the GPS sector, TomTom announced Tuesday that it plans to buy Tele Atlas, the company that makes map software for several GPS and online map providers. TomTom’s bid for the company is for $2.5 billion, Reuters reported.
Tele Atlas also supplies maps to Google, Nokia, and other companies. It will continue to serve other clients, but will likely not remain in business with TomTom’s direct competitors.
Tele Atlas welcomes the takeover, Reuters said; the offer is expected to be formally made in October, with closing expected by the end of the year.