Portable navigation device maker TomTom has made a bid of EUR 2 billion to acquire mapping data provider Tele Atlas. TomTom is offering EUR 21.25 per share for Tele Atlas, a 32 percent premium on its average closing share price over the last three months. Tele Atlas' board has agreed to the offer and holders of 17.4 percent of Tele Atlas shares have agreed to tender their stock already. After the merger Tele Atlas will continue its business as a separate unit in the combined group specialising in developing and licensing digital map products for customers both in and outside the group. Its shares will be de-listed, but no major staff reductions are expected. The total purchase price of EUR 2 billion includes around EUR 200 million cash and is worth around 28 times Tele Atlas' estimated adjusted EBITDA for 2007 of EUR 65 million. The deal is conditional on at least 80 percent of Tele Atlas shares tendered to TomTom as well as shareholder and regulatory approval.
