The Chicago based navigation data provider said 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.
"Our 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," said CEO Judson Green. "Traffic.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."
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. It has 650 employees in 22 locations. Traffic.com's growing list of customers includes AOL, Microsoft, The Weather Channel, Comcast, Garmin and XM Satellite Radio.
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. Navteq expects the deal to dilute 2007 earnings by 11 to 17 cents a share and to be accretive by 2009. Navteq anticipates the closing will occur in the first quarter of 2007.