Dutch portable navigation devices (PNDs) maker TomTom NV (AMS:TOM2) could draw investors’ interest if it remains the last independent maker of digital maps that cover most of the globe, the Wall Street Journal said in its Heard on the Street column.
Such a scenario could happen if Facebook Inc (NASDAQ:FB) takes over TomTom’s rival, Israel-based app developer Waze Ltd, the paper said. According to recent reports, the US technology giant is in advanced talks over a deal that could be worth between USD800m (EUR622m) and USD1bn, Israeli daily Calcalist reported earlier this month.
The WSJ said that potential suitors, such as Apple Inc (NASDAQ:AAPL), could use trapped offshore cash to fund a possible deal. Yet, TomTom’s four founders, which own 47% of the company, are not willing to sell, although other shareholders are in favour of a stand-alone alternative, the WSJ commented.
TomTom’s current enterprise value is some EUR850m, which is equal to some six times this year’s consensus estimate for EBITDA. Its enterprise value has been hurt by declining sales of personal navigation devices, which have dropped by two-thirds in the past five years due to impact of smartphones, the paper added.