Satellite navigation device maker TomTom International has made an offer to acquire Tele Atlas in a move to gain more control over the main supplier of its digital maps.
The deal, valued at around $2.8 billion, would combine two smaller Dutch companies into a larger competitor to rivals including Garmin and Navteq.
TomTom has been working to improve mapping systems with technology it has developed that allows its installed base of more than 10 million GPS devices to automatically survey data and provide feedback that can be incorporated into maps.
TomTom relies heavily on TeleAtlas data for the maps it presents on its GPS navigation devices, which are used in cars and other vehicles.
The acquisition will also give TomTom control of data that Tele Atlas is currently amassing to create 3D views of roads and their surroundings. The views will be featured in a new generation of satellite navigation systems that will compete with voice-centric devices. Tele Atlas has ventured into 3D digital navigation maps in a move to expand beyond providing data for the highly competitive market for 2D maps.
