Bridgestone Europe, a subsidiary of Bridgestone Corporation in EMEA, has signed an agreement with TomTom to acquire your business on-line, for a cash amount of 910 million euros.
The transaction will join the company tires and rubber largest in the world with the number one provider of solutions for fleet digital in Europe, creating a data platform leader for connecting vehicles. TomTom Telematics will accelerate Bridgestone’s on his way to becoming a leader in mobility solutions in the region, and the combination of the offers of both companies will allow Bridgestone to sell products and solutions to a wider customer base.
In addition, the access to the data will improve the development and testing of tyres in the virtual Bridgestone, as well as the innovation of the tires connected that will benefit all customers, including original equipment manufacturers.
The new megatrends of social, economic, and technology are driving the pace of change in the automotive industry and the future of vehicles is connected, autonomous, shared, electric. In that context, Bridgestone has identified mobility solutions, digital solutions and fleet as a strategic priority.
This is reinforced by the growing importance of the fleet of the vehicles of individual property for the transport of people and goods. The increased demand in the transport industry means that owners and fleet managers need to maximize the productivity and minimize the total cost of ownership more than ever.
This latest investment is based on earlier work in Bridgestone to strengthen its digital capabilities in EMEA. Specifically, the company has developed capabilities in data collection sensors, platforms, data and analysis. This has led to the launch of a range of solutions and digital applications as Tirematics, Mobox, FleetPulse and Bridgestone Connect.
TomTom Telematics, a leader in an industry of double-digit growth, adapts strategically to Bridgestone already has a large installed base of 860,000 vehicles, of which more than two-thirds are commercial. Account with a system launch a custom and a digital offer premium which includes WebFleet and NextFleet.
Its robust underlying technologies based on analysis of data is based on an open platform, scalable, secure, and cloud-based. Manages, on average, more than 800 million of positions of GPS, 3.3 million trips and 200 million incoming messages per day.
Its platform enables customers, such as commercial fleets, leasing companies or fleet-corporate, to make their operations more efficient. It also allows associations such as OEM due to the improved experience of the driver. The management team of TomTom Telematics has had success in the steady growth of its customer base and the maintenance of a profitable business year after year. The business is also well positioned for future growth in solutions for fleet and to develop new business models that are based on the capabilities of the software.
Bridgestone has the perfect set of assets to accelerate the business of TomTom Telematics. You can rely on its solid brand value, great customer base, status of preferred supplier in many of the major manufacturers and vehicle fleets in the world, and 2,600 points of sale in EMEA. In addition, Bridgestone brings its investment in research and development leader in the industry, and the Digital Garage headquarters in Rome dedicated to the development of mobility solutions digital.
Paolo Ferrari, CEO and president of Bridgestone EMEA, executive vice president of Bridgestone Group, said: “We have found our perfect combination of TomTom Telematics. Our assets and capabilities complementary to create a power solution of its fleet and further strengthen the arm of digital technology of Bridgestone. Beyond the scale, there would be considerable benefits to complement our offerings, which allows us, among many other opportunities, sell tires and solutions to our customers. Now we are well-positioned in EMEA to accelerate our business based on data, expand our customer base of the fleet and seize opportunities for rapid growth and profitability in the industry of mobility automotive “.
“We recognize and respect the talent and skill of the management team of TomTom Telematics and its 670 employees. Our intention is to promote and grow the business and support their current plans. We want that TomTom Telematics will continue to serve their clients as successfully as it has done in the last few years and to take advantage of its number one position in a fast-growing market “.
” After a thorough review of multiple strategic options, we determined that The sale of TomTom Telematics to Bridgestone is the best for TomTom Telematics and our technology business, central location, ” commented Harold Goddijn, CEO of TomTom. “We will continue to invest in our innovative system of creating maps, allowing map updates faster at the same time reducing operating costs, paving the way towards the driving autonomous”.
“TomTom Telematics is the provider of telematic services number one in Europe, and we continued to increase our installed base of vehicles to which we provide service at the global level,” added Thomas Schmidt, managing Director TomTom Telematics. “We hope to accelerate our ambitious growth plan and take advantage of new opportunities as a part of Bridgestone. In the meantime, we hope that the transition is seamless without any interruptions to our customers, suppliers and employees. “
Details of the transaction
At the closing, Bridgestone will acquire all of the capital stock issued and outstanding of TomTom Telematics for a cash amount of € 910 million, subject to adjustments closing common. The acquisition is being financed with the available cash on the balance sheet and is expected to be available to EPS in the first year. Just is acquiring the business unit telematics TomTom.
It is anticipated that the transaction will be completed no later than the second quarter of 2019. The transaction is still subject to applicable regulatory approvals, consultation with the representative bodies of the employees of TomTom and the approval of the shareholders of TomTom.
In connection with this transaction, Morgan Stanley acts as exclusive financial advisor to Bridgestone and Simmons & Simmons is acting as legal advisor. (Archive photo)
Reviews – Journal of Transport are not responsible for the particular comment