Tele Atlas, the Dutch-based global digital mapping company, has acquired a 76% controlling interest in its African rival, Georigin, of Pretoria, for an undisclosed amount.
Georigin specialises in mapping data collection in east, west and southern Africa, an area that is home to over 500 million people. Georigin also has a 49% interest in MapIT, which owns the rights to a map database of SA and Nigeria.
Tele Atlas COO and MD for Europe, Middle East and Africa Jack Reinelt says the Georigin and MapIT buys are "designed to significantly strengthen the company`s operations in Africa," and its direct interaction with customers and other partners in the region.
He notes that the closing of the transaction is subject to the satisfaction of certain "usual and customary" conditions.
"Our commercial partners are increasingly looking for more data in this region, and we see this acquisition as the best platform to dramatically increase the content of our maps for the African continent, including high-quality points of interest (POIs), navigation attributes and addresses," says Reinelt.
"Since the area is a fast-growing tourism destination, digital maps of the region are increasingly important to Tele Atlas` automotive, portable navigation, mobile and Internet application partners," he adds.
"Leading countries like SA and Nigeria are truly emerging markets, with economic growth of about 5% year-over-year. We see very strong growth of mapping and GPS-enabled navigation products in these very outdoor-oriented societies."
High quality
Reinelt says Tele Atlas started collaborating with Georigin and MapIT a year ago "because they have the highest quality digital maps in the region".
"The well-trained and professional staff of 80 people, both through permanent employees and contractors at Georigin, has very strong competencies in data collection and product creation technologies," Reinelt adds. "The company also has a well-established customer base in the private and government sector. Georigin`s experience in gathering digital data of much of the African continent will enable us to bring that information sooner to the market."
Tele Atlas says Georigin MD Pieter Grobbelaar will continue to lead the activities of the company he co-founded.
Says Grobbelaar: "We are proud to be part of Tele Atlas. The integration of the valuable digital information at Georigin, together with the global scope of Tele Atlas and its network of global partners, are the best guarantee for all parties involved, like customers and employees, that we will continue and even speed up the provision of high-quality digital maps of the African continent."
Grobbelaar and other incumbent managers retain a 24% ownership stake in the business, while New Holland Publishing, part of Johncom, owns the other 51% of MapIT.
The Tele Atlas buy is part of a larger consolidation of mapping and GPS navigation systems content providers. Reuters reports that navigation system maker TomTom in July made a two billion euro offer for Tele Atlas, which was accepted by the latter`s board. This was then trumped by a 2.3 billion euro offer from Cayman Islands-based rival Garmin late last month, effectively initiating a bidding war that must still be resolved.
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