Mitsubishi Corporation (MC) and Nippon Telegraph and Telephone Corporation (NTT) of Japan are to jointly acquire a 30 percent ownership stake in HERE Technologies. The companies are co-investing in Here via their newly established, jointly owned holding company ‘COCO Tech Holding’ B.V. 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 is a location data and technology platform, providing a development environment (HERE Workspace), a data exchange (HERE Marketplace), map creation and visualization 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. The company has more than 9,000 employees across 56 countries. Recently, the company opened its new office at NESCO IT Park in Mumbai.
Edzard Overbeek, CEO, HERE Technologies, said, “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. We will be honoured to play a role in the digitalization 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.”
Takehiko Kakiuchi, president and CEO, Mitsubishi Corporation said, “We believe that HERE's Reality Index has unlimited potential.”
Jun Sawada, president and CEO, NTT said, “The collaboration between HERE's location technology and the business momentum of MC and NTT will generate great business opportunities. I look forward to delivering valuable solutions for all customers together.”
MC and NTT are acquiring the stake by purchasing new shares as well as acquiring existing shares from current HERE shareholders. This is in line with the strategic goal of having a broadened shareholder structure for HERE.
Upon completion of the transaction, HERE would have nine direct and indirect shareholders: Audi, Bosch, BMW Group, Continental, Intel Capital, MC, Mercedes-Benz, NTT and Pioneer.
With these new Japanese investors, HERE will have a springboard to accelerate growth in the Asia Pacific region. To support its long-term regional growth ambitions HERE is currently in preliminary exploratory talks with both MC and NTT on strategic initiatives that would include supporting both companies’ digitalisation efforts.
HERE has been growing its presence in the Asia Pacific during the past three years. Its commitment to the region includes the recent extension of the HERE Workspace along with a suite of HERE Location Services into Japan.
Image Courtesy - HERE Technologies
Also read: HERE Tech opens its biggest R&D hub in Mumbai