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Google Inc (GOOG), Apple Inc. (AAPL), Facebook Inc (FB): TomTom, an Acquisition Candidate?

The WEBFLEET subscriber base in the quarter grew to more than 250,000 (Q4 2012: 239,000). TomTom believes this is “the largest in the fleet management services industry.“

Final Note

TomTom’s maps are licensed by Apple Inc. (NASDAQ:AAPL) among other handset manufacturers. With more than $145 billion in cash, Apple Inc. (NASDAQ:AAPL) could acquire TomTom for a dime.

Rumors about a possible acquisition are already as old as the hills. The most suitable candidate would be Apple Inc. (NASDAQ:AAPL), but why hasn’t it materialized yet?

Personally I think the founding fathers of TomTom don’t want to sell their company for a price that doesn’t correspond  with the real value of the business. They still might be convinced that the next growth phase will bring the company to a desired stock price and market cap.

As mentioned in my former article the company is diversifying its products. At TomTom’s Launch event on April 17, the Consumer business unit announced a number of new products. They presented a new range of PNDs that are powered by a new navigation engine, NavKit. NavKit will power the next generations of products across the business and will also be available for third party customers. Additionally TomTom announced a range of new GPS watches for runners, cyclists and swimmers.

This new direction in consumer products could attract new, interesting parties such as NIKE, Inc. (NYSE:NKE) on the scene. NIKE, Inc. (NYSE:NKE) and TomTom have collaborated in the past to create the Nike+ SportWatch GPS. This past partnership with Nike could get a new boost if mapping and navigation solutions become more integrated in sports products.

The article in the Wall Street Journal made sense, however the final conclusion is that not only mobile handset manufacturers like Apple Inc. (NASDAQ:AAPL) could be interested in TomTom moving forward.

If Waze would be sold, TomTom would be the last independent provider of digital maps that cover much of the globe. A map will be a key interface for local discovery and commerce.  This has become a scarce and valuable asset.

Let’s see what happens. However, one thing is for sure: it’s just a matter of time, the company will be acquired!

Johan Seijkens has a position in TomTom listed on NYSE Euronext Amsterdam. The Motley Fool recommends Apple, Facebook, Google, and Nike. The Motley Fool owns shares of Apple, Facebook, Google, and Nike.

The article TomTom, an Acquisition Candidate? originally appeared on and is written by Johan Seijkens.

Johan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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