Bridgestone Europe to acquire TomTom Telematics
Bridgestone Europe, a subsidiary of Bridgestone Corporation in Europe, Middle East, and Africa (EMEA), has entered into an agreement with TomTom to acquire its telematics business for a cash consideration of €910 million.
The transaction is intended to create a leading data platform for connected vehicles. Company representatives say "TomTom Telematics will accelerate Bridgestone on its journey to becoming a mobility solutions leader in the region, and the combination of both companies’ offerings will allow Bridgestone to cross-sell tires and solutions to a larger customer base." The data access is also expected to enhance Bridgestone’s virtual tire development and testing as well as connected tire innovation.
Bridgestone representatives say that the company has identified digital mobility solutions and fleet solutions as a strategic priority. This latest investment is intended to build 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.
TomTom Telematics has a large and growing installed user base of 860,000 vehicles, of which more than two-thirds are commercial. It has a tailored go-to-market system and a premium digital offering including WebFleet and NextFleet. Its technologies based on data analytics rely on an open, scalable, secure, and cloud-based platform. It handles on average over 800 million GPS positions, 3.3 million trips, and 200 million inbound messages per day.
TomTom Telematics’ platform enables customers such as commercial fleets, leasing companies, and corporate fleets to make their operations more efficient. It also enables partnerships such as with OEMs because of the improved driver experience.
The transaction is anticipated to be completed in the second quarter of 2019.