TCS acquires LocationLogic for $25m
!["TCS]("http://telematics-fcbi-d5.ndpclient.com/files/images/TCS_local "\"TCS")
The purchase cost TCS $15 million in cash and approximately 1.4 million TCS shares valued at $10 million.
LocationLogic assets were acquired by private equity investors Hale Capital Partners and Hale Global from Autodesk earlier in 2009.
Substantially all of LocationLogic's revenue stream is recurring service revenue from hosted infrastructure software and location-based applications.
In a January 2009 Frost & Sullivan report on LBS companies, TCS was shown to offer the most complete LBS solution, followed by LocationLogic.
Carriers who have added a location component to popular services such as messaging, mapping, mobile search, emergency assistance services, games, or premium information, have experienced rapid, increased customer usage.
Both IDC and Gartner believe wireless carriers incorporating location information with contextual data will find significant new opportunities for capturing revenue. IDC anticipates total annual US consumer LBS revenue to increase by a 50% CAGR from $270 million in 2007 to $2.1 billion in 2012.
According to TCS chairman & CEO Maurice Tosé, the acquisition of LocationLogic assets strengthens TCS in four significant ways: it enhances TCS's LBS infrastructure platform, expands its LBS application portfolio beyond nav, traffic and POIs, strengthens longstanding relationships with two of North America's largest carriers, and adds about a dozen patent applications that complement TCS's existing patent portfolio.
