Networks In Motion, a provider of GPS-enabled navigation software for mobile phones, was purchased today by TeleCommunication Systems, Inc. for $170 million to be paid in a combination of cash, common stock and promissory notes. NIM’s Board of Directors has approved the transaction and will recommend its approval by shareholders.
TeleCommunication Systems, Inc. provides carrier infrastructure with a focus on wireless text messaging and location-based services. With the explosion of mainstream interest in LBS this past year, the company thought it was time to beef up its capabilities in this area.
For Networks In Motion, the consensus seems to be that the sale couldn’t have come at a better time. Why? Because of Google’s impending turn-by-turn-providing mobile GPS software which will likely eventually be just as good as any paid software currently available. $170 million isn’t too bad for what could be a commodity in the very near future.
More details are available in the official press release.