TomTom sells telematics business to Bridgestone for $1bn
Independent location technology specialist TomTom has entered into an agreement with Bridgestone Europe to sell its telematics business for slightly more than US$1bn in cash. The announcement, which came on Tuesday, said that “the transaction will bring together the world’s largest tyre and rubber company with the number one provider of digital fleet solutions in Europe, creating a leading data platform for connected vehicles.”
TomTom Telematics will allow Bridestone to cross-sell tires to an expanded customer base in Europe, while the added data from TomTom’s software will enhance virtual development and testing of Bridgestone products. TomTom has an installed user base of 860,000 vehicles, of which over two thirds are commercial. The company’s underlying technologies based on data analytics rely on an open, scalable, secure and cloud-based platform and handle over 800 million GPS positions, 3.3 million trips, and 200 million inbound messages per day.
This acquisition represents a continued effort by Bridgestone to improve its digital capabilities. The company has already taken steps to improve its data collection from sensors, data platforms and analytics. This has resulted in the launch of a range of digital solutions and applications such as Tirematics, Mobox, FleetPulse and Bridgestone Connect, according to a press release.
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Paolo Ferrari, CEO and President of Bridgestone EMEA, Executive Vice President of Bridgestone Group, said: “We have found our perfect match in TomTom Telematics. Our complementary assets and capabilities will create a fleet solutions powerhouse and will further strengthen Bridgestone’s digital technology arm. Beyond scale, there would be considerable benefits by complementing our offerings, allowing us, among many other opportunities, to sell tyres and solutions across our customers. We are now well-positioned in EMEA to accelerate our data-driven business, expand our fleet customer base and seize fast-growing, profitable opportunities in the automotive mobility industry.
We recognise and respect the talent and skill of TomTom Telematics’ management team and its 670 employees. It’s our intention to foster and grow the business and support its current plans. We want TomTom Telematics to continue serving its customers as successfully as it has done over the last few years and take advantage of its number one position in a fast-growing market.”
