NAVTEQ announced it has agreed to acquire Traffic.com, a provider of personalized traffic information in the United States for an equity value of approximately $179 million.
The acquisition of Traffic.com will provide NAVTEQ with proprietary traffic content, as well as the technology and expertise to deliver that content to a wide variety of customers across multiple industries. The Board of Directors of each company has approved the agreement.
“Our focus is on enhancing our map with content that brings the map to life and increases the utility and convenience of navigation devices. We have long believed in the value of traffic data and this acquisition is a natural and logical progression for NAVTEQ,” said Judson Green, President and CEO of NAVTEQ. “Traffic.com brings a stream of high-quality, proprietary traffic content and a unique technology platform for the delivery of this and potentially other content. Combined, the two companies have the potential to create and deliver advanced dynamic content that will fuel the next generation of location-enabled applications.”
Today, Traffic.com offers real-time customized traffic reports in 50 metropolitan areas and is a critical data component of NAVTEQ Traffic. Traffic.com had fiscal 2005 revenue of $43.3 million. The Company currently has approximately 650 employees in 22 locations. Traffic.com’s growing list of customers includes AOL, Microsoft, The Weather Channel, Comcast, Garmin and XM Satellite Radio.
“In addition to collecting and distributing premium traffic content, Traffic.com has the unique capability to productize traffic content and deliver it across multiple platforms,” said Robert N. Verratti, CEO, Traffic.com. “Our technology and experience is a natural fit with NAVTEQ’s industry-leading solutions.” NAVTEQ intends to finance the purchase price through a combination of approximately $47 million in cash and the issuance of approximately 4.1 million shares of NAVTEQ stock.
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