December 9, 2016
Vodafone, the world’s biggest mobile service provider by sales, announced today that it has submitted a cash takeover bid for Swedish wireless navigation device company, Wayfinder.
Vodafone’s offer, of 12 Swedish kronor per share, values Wayfinder at 239 million kronor ($30 million), and represents a 253% premium on Wayfinder’s closing stock price yesterday of 3.4 kronor per share.
With the European mobile phone market saturated, Vodafone is starting to look for new ways to increase revenue, and purchasing Wayfinder would put Vodafone firmly in the direction of increasing revenue through mobile data sales.
Vodafone also believes that integrating Wayfinder software into customer handsets would help it attract and retain customers.
Wayfinder software displays user-friendly maps on mobile phones, and gives voice directions to drivers.
Vodafone is banking on its belief that customers will value being able to get accurate voice directions and maps direct from their mobile phone.
The takeover bid is backed by Wayfinder’s management, and Vodafone said it has already secured the backing of shareholders holding 44.9% of Wayfinder stock.