The Dutch company TomTom Telematics (TOM2) tries to catch the benefits of growing Eastern European markets starting their entry with a buy-out of Polish telematic service Finder S.A that was securing the leading position in the local market over a number of years.
Finder was awarded the “Forbes Diamond 2012” with their strategically long-sighted management and talented developers who built the graceful and reasonable GPS service. The famous business analysis company, Frost & Sullivan, awarded Finder the European prize for the best strategic product in the category of M2M communication (machine-to-machine).
With the acquire of Polish platform and work forces TomTom Telematics can work on improving brand strength and close the hole of the most problem-plagued scope of work for the Warsaw office. Now Finder staff got their chance to expand the service outside the country.
“Poland is one of the fastest growing telematics markets in Europe,” said Thomas Schmidt, Managing Director TomTom Telematics. “By combining the strength of existing TomTom Telematics activities with Finder S.A., we directly address a large and growing telematics market with high potential whilst establishing a leading position in Eastern Europe.”
It’s early to talk about the real rivalry between the new TomTom service and other significant players on a market (like Wialon or GPSgate), but the Dutch increased their base of connected devices by 10 percent. This acquisition adds more than 60,000 subscriptions to the TomTom Telematics. The final value of TomTom’s subscribes reaches 600 thousands, that is more than adequate to match with other significant market players.
Eastern Europe becomes a seductive region not only because of industrial production and economic growth, but also by a reason of full-scale economic recession in Russia and Ukraine. That way, Poland, Czech Republic, Slovakia and Baltic countries became the eastern out-edge for thriving international companies. Fighting for the market is important for many players, especially the Belarus company Wialon.
It should be noted that TomTom Telematic already acquired some exterior services like French DAMS Tracking and Dutch Fleetlogic in 2014, Spanish Coordina in 2013, Dutch Tele Atlas in 2008 and British Applied Generics in 2006. This brand is well known in 126 countries.