Bridgestone Europe NV/SA, a subsidiary of Bridgestone Corporation in EMEA, has announced it will be acquiring the telematics business of TomTom for a cash value of €910 million.
Established in 1991, TomTom is best known for its GPS-powered navigation services and devices, such as satellite navigation units for cars, and is also one of the major global online mapping platforms, competing with big players such as Google Maps, Here Technologies, and OpenStreetMap. Indeed, news first emerged in 2018 that TomTom was considering selling off its telematics unit in what may be a bid to compete with Google on navigation software.
Through the transaction, TomTom Telematics will accelerate Bridgestone on its journey to becoming a mobility solutions leader in the region, and the combination of both companies’ offerings will allow Bridgestone to cross-sell tyres and solutions to a larger customer base. Furthermore, the data access will enhance Bridgestone’s virtual tyre development and testing as well as connected tyre innovation benefiting all customers including OEMs.
New social, economic and technological megatrends are pushing the pace of change in the automotive industry and the future of vehicles is connected, autonomous, shared and electric. In that context, Bridgestone has identified digital mobility solutions and fleet solutions as a strategic priority. This is reinforced by the growing importance of fleets over individually-owned vehicles for transportation of people and goods. Increasing demand in the transportation industry means that fleet owners and managers need to maximise productivity and minimise total cost of ownership more than ever.
This latest investment builds on previous work at Bridgestone to strengthen its digital capabilities in EMEA. Specifically, the company has built capabilities in 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.
TomTom Telematics appears to fit neatly into this strategy: it has a growing installed user base of 860,000 vehicles of which more than two thirds are commercial. It has a tailored go-to-market system and a premium digital offering including WebFleet and NextFleet. It handles on average over 800 million GPS positions, 3.3 million trips, and 200 million inbound messages per day.
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.”
“After a thorough review of multiple strategic options, we have determined that the sale of TomTom Telematics to Bridgestone is in the best interest of both TomTom Telematics and our core location technology business,” commented Harold Goddijn, CEO, TomTom. “We will continue to invest in our innovative map-making system, enabling faster map updates while lowering operational costs, paving the road towards autonomous driving.”
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