- Established high quality traffic data as a competitive differentiator for turn-by-turn navigation app vendors.
- Combined with NIM’s large user base, Trafficgauge’s technology could now be used to provide traffic data based on the speed of NIM customer vehicles.
- Transaction made NIM a more attractive acquisition target for TCS in December 2009.
Overview
On March 5, 2009, Networks in Motion acquired Trafficgauge, a leading provider of real-time road traffic data.
Competitive 2-way horse-race between arch-rivals resulted in an attractive deal for management and shareholders.
Significance
Catapult’s role
- Successfully positioned Trafficgauge as a data company despite the vast majority of historical revenue coming from hardware sales.
- Broad marketing process resulted in significant interest and a 2-party bidding war.
- Resource-constrained management team relied heavily on Catapult to get the deal over the finish line post-term sheet.
“The fact that Catapult was able to generate a competitive process in an extremely challenging M&A market is testament to how hard and smart they work. Without the quality advice and innovative thinking that Catapult provided, it would have been much more difficult to complete a deal in this challenging economic environment.”
