BRUSSELS — Bridgestone Europe N.V./S.A. is acquiring Amsterdam-based TomTom Telematics B.V. in a move designed to accelerate Bridgestone's strategy of becoming a "mobility solutions" leader in Europe.
The acquisition, valued at $1.03 billion, is expected to be completed by the end of the second quarter, subject to regulatory approvals.
"The combination of both companies' offerings will allow Bridgestone to cross-sell tires and solutions to a larger customer base," the company explained.
Furthermore, it said, the data-access will enhance Bridgestone's virtual tire development and testing as well as connected-tire innovations.
TomTom Telematics has an installed user base of 860,000 vehicles, more than two-thirds of whom are commercial users, Bridgestone noted.
The addition of these assets will create a "fleet-solutions powerhouse," said Paolo Ferrari, CEO and president of Bridgestone EMEA and executive vice president of Bridgestone Corp.
"We have found our perfect match in TomTom Telematics," Mr. Ferrari said. "Our companies' complementary assets and capabilities will create a fleet- solutions powerhouse and further strengthen Bridgestone's digital technology arm.
"We are now well-positioned in EMEA to enhance our core tire business, accelerate our data-driven business, expand our fleet customer base and seize fast-growing, profitable opportunities in the automotive mobility industry.
"There would be considerable benefits by complementing our offerings, allowing us … to sell tires and solutions across our customers," Mr. Ferrari said.
Amsterdam-headquartered TomTom said the sales of its telematics business would make it "more focused on shaping the future of driving."
"We will continue to invest in our innovative map-making system, enabling faster map updates … paving the road toward autonomous driving," TomTom CEO Harold Goddijn said.
TomTom describes itself as the leading independent location-technology specialist, shaping mobility with maps, navigation software, real-time traffic information and services.
The acquisition builds on previous work at Bridgestone to strengthen its capabilities in data-collection from sensors, platforms and analytics.
Last year, Bridgestone reconfigured its new-mobility strategy to better align with automotive industry trends towards connected, autonomous and electric vehicles.
In that context, Bridgestone said it had identified digital mobility as well as fleet-solutions as a "strategic priority."
Bridgestone did not comment on the acquisition's potential impact on other geographical areas.