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BREAKING NEWS

TomTom CEO says company will grow independently after Telematics sale

TomTom CEO says company will grow independently after Telematics sale
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Dado Ruvic(Reuters)
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AMSTERDAM (Reuters) - TomTom <TOM2.AS> can grow and thrive independently, its chief executive said on Tuesday after the Dutch navigation company announced the sale of its Telematics division representing about half of the company's market value.

In an interview with Reuters, Harold Goddijn said that licensing cash flow for its digital mapping business was assured by "anchor customers" including Apple, and growing thanks to increasing use by developers of location-based software applications.

He acknowledged Google's recent map supply deals with TomTom customers Renault and Volvo had changed market dynamics, but insisted TomTom's automotive revenue would continue to grow.

"On the one hand that (Google's entry) is scary, but on the other hand it really focuses the mind," he said.

TomTom agreed on Tuesday to sell Telematics to Japan's Bridgestone <5108.T> for 910 million euros ($1.03 billion).

(Reporting by Toby Sterling; editing by Jason Neely)

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