Brussels – Bridgestone Europe NV is acquiring Amsterdam-based TomTom’s Telematics business for a cash consideration of €910 million, Bridgestone has announced.
TomTom Telematics will help accelerate Bridgestone’s strategy to become a ‘mobility solutions’ leader in Europe, said a 22 Jan statement from the tire maker.
The acquisition is expected to be completed by the end of the second quarter of 2019, subject to regulatory approvals.
“The combination of both companies’ offerings will allow Bridgestone to cross-sell tires and solutions to a larger customer base,” the company explained.
Furthermore, it said, the data-access will enhance Bridgestone’s virtual tire development and testing as well as connected-tire innovations.
TomTom Telematics has an installed user base of 860,000 vehicles,with commercial users representing over two-thirds of customers, Bridgestone noted.
The addition of these assets will create a “fleet solutions powerhouse,” said Paolo Ferrari, CEO and president of Bridgestone EMEA and executive VP of Bridgestone Group.
Additionally, Bridgestone expects to strengthen its digital technology arm through the acquisition.
“There would be considerable benefits by complementing our offerings, allowing us… to sell tires and solutions across our customers,” said Ferrari.
Amsterdam-headquartered TomTom said the sales of its the telematics business would make it “more focused on shaping the future of driving.”
“We will continue to invest in our innovative map-making system, enabling faster map updates… paving the road towards autonomous driving,” said Harold Goddijn, CEO of TomTom.
The acquisition builds on previous work at Bridgestone to strengthen its capabilities in data-collection from sensors, platforms and analytics.
Last year, Bridgestone rejigged its new-mobility strategy to better align with automotive industry trends towards connected, autonomous and electric vehicles.
In that context, Bridgestone said it had identified digital mobility as well as fleet-solutions as a “strategic priority.”