Bridgestone Europe to buy TomTom telematics business

Bridgestone Europe has agreed to acquire TomTom's telematics business for EUR910m (US$1.03bn).

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 data platform for connected vehicles.

The 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.

"Our complementary assets and capabilities will create a fleet solutions powerhouse and will further strengthen Bridgestone's digital technology arm," said Bridgestone CEO, Paolo Ferrari.

"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."

On closing, Bridgestone will acquire all issued and outstanding share capital of TomTom Telematics for a cash consideration of EUR910m, subject to customary closing adjustments. The acquisition is being funded with available cash on the balance sheet and is expected to be EPS accretive in year one.

It is only the telematics business unit of TomTom which is being acquired. The transaction is anticipated to be completed latest in the second quarter of 2019.

The transaction is still subject to the relevant regulatory approvals, consultation with TomTom employee representative bodies and approval of TomTom's shareholders.

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