Great news especially for those waiting for TMC in US
Chicago, IL â€“ November 6, 2006 â€“ NAVTEQ (NYSE: NVT), a leading global provider of digital maps for vehicle navigation and location-based solutions, announced it has agreed to acquire Traffic.com, a leading 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.
â€œOur 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,â€ said Judson Green, President and CEO of NAVTEQ. â€œTraffic.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.â€
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.comâ€™s growing list of customers includes AOL, Microsoft, The Weather ChannelÂ®, Comcast, Garmin and XM Satellite Radio.
â€œIn addition to collecting and distributing premium traffic content, Traffic.com has the unique capability to productize traffic content and deliver it across multiple platforms,â€ said Robert N. Verratti, CEO, Traffic.com. â€œOur technology and experience is a natural fit with NAVTEQâ€™s industry-leading solutions.â€
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. Based on current expectations and projections, management expects dilution to earnings per share from the acquisition of Traffic.com of $0.11 to $0.17 in 2007 and accretion to earnings per share by 2009. NAVTEQ anticipates the closing will occur in the first quarter of 2007. The acquisition is subject to customary closing conditions. Merrill Lynch acted as financial advisor to NAVTEQ on the transaction.
NAVTEQ Management will discuss the acquisition on a conference call to be held at 8:30AM ET today. Information for the Companyâ€™s conference call is as follows:
When: Monday, November 6, 2006 at 8:30AM ET
How: Log on to the web at the URL above or call to listen in at 866-831-6272 (North America) or 617-213-8859 (international), passcode 22543656
The company will provide a telephone replay of the conference call at 888-286-8010 (North America) or 617-801-6888 (international), passcode 87361148. The telephone replay will be accessible from 11:00 AM ET Monday, November 6, 2006 through 11:59 PM ET on Monday, November 13, 2006. An on-demand replay of the conference call will also be available online at investor.navteq.com until December 6, 2006.
A presentation regarding the transaction will be available shortly in the â€˜News & Eventsâ€™ section of our IR website.
Traffic.comÂ® is a leading provider of accurate, personalized traffic information for drivers coast to coast. Through the industryâ€™s most comprehensive data collection infrastructure, Traffic.com offers consumers real-time customized traffic reports in 50 metropolitan areas. These personalized consumer reports are complete with predictive traffic trends, vehicle speeds, congestion levels, travel times, and delay times delivered via Web, wireless device, radio, television, and in-vehicle navigation systems. Traffic.comâ€™s ability to distribute traffic information via specialized data feeds and across multiple platforms creates unique, multi-platform branding opportunities for advertisers, enabling them to expand their reach and target consumers with useful, relevant content multiple times per day.
Traffic.com is a registered trademark of Traffic.com, Inc.