HERE Technologies, a location data and technology platform, has announced that Mitsubishi Corporation and Nippon Telegraph and Telephone Corporation (NTT) of Japan are to jointly acquire a 30% ownership stake in the company.
The companies are co-investing in HERE via their newly-established, jointly-owned holding company COCO Tech Holding BV in the Netherlands.
The transaction is expected to close in the first half of 2020, subject to regulatory approval. The parties have agreed not to disclose the financial details of the transaction.
HERE provides a development environment (HERE Workspace), a data exchange (HERE Marketplace), map creation and visualisation capabilities (HERE Studio) and a set of location services (HERE Location Services). These capabilities leverage the Reality Index, a rich source of location contextual data that captures relationships between places and things.
“We are excited to welcome Mitsubishi Corporation and NTT as new strategic investors,” said Edzard Overbeek, CEO, HERE Technologies. “We have been greatly inspired by our conversations. Mitsubishi Corporation and NTT share our vision of enabling an autonomous world for everyone and believe in our ability to harness our location platform to address major global challenges like urban congestion, supply chain inefficiency, and sustainable resource usage, just to name a few.”
Overbeek added that HERE will be honoured to play a role in the digitalisation initiatives of Mitsubishi Corporation and NTT. “Their investment also means we are further diversifying our shareholder base beyond automotive, which is important given the appeal and necessity of location technology across geographies and industries,” he said.
“We believe HERE’s Reality Index has unlimited potential,” said Takehiko Kakiuchi, president & CEO, Mitsubishi Corporation. “The collaboration between HERE’s location technology and the business momentum of Mitsubishi Corporation and NTT will generate great business opportunities. I look forward to delivering valuable solutions for all customers together,” added Jun Sawada, president & CEO, NTT.
Mitsubishi Corporation and NTT are acquiring the stake by purchasing new shares as well as acquiring existing shares from current HERE shareholders. Upon completion of the transaction, HERE would have nine direct and indirect shareholders: Audi, Bosch, BMW, Continental, Intel Capital, Mitsubishi Corporation, Mercedes-Benz, NTT and Pioneer.
With the new Japanese investors, HERE will have a springboard to accelerate growth in the Asia Pacific. To support its long-term regional growth ambitions, HERE is in preliminary exploratory talks with both Mitsubishi Corporation and NTT on strategic initiatives that would include supporting both companies’ digitalisation efforts.
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Source: Financial Express