Withdrawal Clears Way for Rival TomTom to Take Control of Dutch Mapmaker
GPS device maker Garmin withdrew its $3.3 billion buyout offer for Dutch mapmaker Tele Atlas NV today, a move that opens the door for Tele Atlas to be acquired by Garmin’s chief rival, TomTom.
TomTom had already offered more than $2 billion in a bid to take control of Tele Atlas, a move that sparked the larger counteroffer from Garmin in October. Along with announcing it’s plans to withdraw bid, Garmin said today that it has reached a deal with Navteq Corp. — Tele Atlas’ only rival to offer digital maps on a global scale — that secures maps for Garmin devices through 2015.
Also last month, Nokia Corp., tendered an $8.1 billion buyout offer for Navteq. Garmin officials said at the time that the company’s bid for Tele Atlas was a move to ensure that world’s two largest digital mapmakers did not end up in the hands of its two major rivals.