NAVTEQ to Acquire Traffic.com
Reasonably big news in the GPS mapping and data feed world, as NAVTEQ has agreed to purchase Traffic.com, provider of traffic data feeds to media outlets around the country. The purchase price is about $179 million.
This creates an interesting situation. Inrix is also a supplier of traffic data around the US, and is in a position that many believe is superior to Traffic.com’s position, technology-wise. One has to wonder if Inrix will stay as only a traffic provider or will they join up with TeleAtlas, the other major mapping force in the world.
More from the Traffic.com Press Releas below::
“Our focus is on enhancing our map with content that brings the map to life and increases the utility and convenience of navigation devices. We have long believed in the value of traffic data and this acquisition is a natural and logical progression for NAVTEQ,” said Judson Green, President and CEO of NAVTEQ. “Traffic.com brings a stream of high-quality, proprietary traffic content and a unique technology platform for the delivery of this and potentially other content. Combined, the two companies have the potential to create and deliver advanced dynamic content that will fuel the next generation of location-enabled applications.”
Today, Traffic.com offers real-time customized traffic reports in 50 metropolitan areas and is a critical data component of NAVTEQ Traffic. Traffic.com had fiscal 2005 revenue of $43.3 million. The Company currently has approximately 650 employees in 22 locations. Traffic.com’s growing list of customers includes AOL, Microsoft, The Weather Channel®, Comcast, Garmin and XM Satellite Radio.
“In addition to collecting and distributing premium traffic content, Traffic.com has the unique capability to productize traffic content and deliver it across multiple platforms,” said Robert N. Verratti, CEO, Traffic.com. “Our technology and experience is a natural fit with NAVTEQ’s industry-leading solutions.”
NAVTEQ intends to finance the purchase price through a combination of approximately $47 million in cash and the issuance of approximately 4.1 million shares of NAVTEQ stock. Based on current expectations and projections, management expects dilution to earnings per share from the acquisition of Traffic.com of $0.11 to $0.17 in 2007 and accretion to earnings per share by 2009. NAVTEQ anticipates the closing will occur in the first quarter of 2007. The acquisition is subject to customary closing conditions. Merrill Lynch acted as financial advisor to NAVTEQ on the transaction.
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Posted by Scott Martin at November 6, 2006 10:09 AM