An analyst from the Netherlands believes that Apple is interested in purchasing GPS and mapping company TomTom as a quick fix to their own Maps fiasco that continues to drag on. Hans Slob from Rabobank International told investors today that there’s a 30 percent chance that Cupertino will make an offer on the firm.
Slob reportedly told investors that TomTom needs the cash and Apple needs the mapping data to supplement their own Maps iOS app. He said that TomTom has the capability to make fast changes that could be used to correct mapping errors. Furthermore, they can implement new features and functions much faster than Apple would be able to.
It’s unclear at this hour if the analyst is basing his advice on some insider information or is just making a far-reaching prediction but given his analysis, an acquisition would make sense for both parties involved.
He believes Apple would be prepared to pay as much at 10 euros per share and that it would be a great way “out” for TomTom founders. He has since put a buy recommendation on TomTom and raised share price estimates by 38 percent.
Share value in the Dutch-based company climbed to an eight week high as news of the analyst’s prediction spread to investors. The news helped the stock gain 33 percent of its value this year, giving the company a value of roughly $1.17 billion.
Do you think it would be wise for Apple to hire outside help for their mapping application?