Personal navigation company Telenav Inc. has acquired Skobbler GmbH, a German startup that makes map applications and mobile games, for $24 million in cash and stock. Skobbler’s products use data from OpenStreetMap, or OSM, which was acquired by Seattle-based Telenav in 2013. OSM offers open-source, user-generated data about geography, including granular details about roads or routes, traffic, venues and major lndmarks. Its massive data resource enables the creation of a “free and editable” map of the world, says OSM founder Steve Coast.
Companies that don’t want to buy location data for use in their apps or websites from the likes of Google Inc. and its competitors in this arena—including Apple Inc., Microsoft Corp., AOL Inc., Nokia Corp. and several others—often use OSM data as a more affordable alternative. “Check-in” app Foursquare is one of OSM’s most famous users.
Telenav plans to use Skobbler’s technology to improve its Scout.me GPS navigation app, according to Ryan Peterson, a senior managing director of Telenav’s European operations.
Scout.me gives users directions, help in avoiding traffic, and a guide to places like gas stations or cafes nearby, as well as events in their area. It competes with similar products from Google and independent players like AroundMe, from Italian company Attorno a Me S.r.l.
Mr. Peterson also said Telenav plans to keep Skobbler’s staff in Berlin and Romania, giving the U.S. company a broader presence in Europe.
Skobbler raised €4 million in Series A funding in 2011 from an undisclosed fund in Switzerland. It originally was spun out of Navigon AG, which is now part of Garmin Ltd.
Skobbler’s co-founder and financial chief, Marcus Thielking, said the total acquisition consideration was $24 million, with $19 million of that in cash and the rest in Telenav stock.
Mr. Thielking said OSM data are more accurate and complete in certain European cities and rural areas versus any other available data.
Source: WSJ