TomTom 2007 Annual Report Download - page 77

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71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OF TOMTOM NV
26. ACQUISITIONS
2006
Acquisition of Applied Generics Ltd.
On 11 January 2006, the Group acquired 100% of the share capital of Applied Generics for a price of €16.5 million.
Applied Generics has developed technology that makes it possible to generate real-time road traffic information
based on the analysis of mobile network usage and cell-switching. The technology has the potential to deliver
high quality traffic information at a fraction of the investment normally required to generate traffic information.
TomTom classifies the acquisition of Applied Generics as an acquisition of a group of identifiable assets and
liabilities which do not meet the definition of a business under IFRS 3 “Business Combinations”.
2007
Acquisition of Tele Atlas shares
In 2007, the Company acquired 29.9% of the shares of Tele Atlas for a total consideration of €816 million. Since
TomTom did not obtain control over Tele Atlas in this transaction, the transaction does not qualify as a business
combination. For more details about this transaction reference is made to note 14: Investments in associates.
27. RELATED PARTY TRANSACTIONS
On 7 November 2007, TomTom acquired a 28.3% interest in Tele Atlas which was later increased to 29.9%. As
from 7 November 2007, the investment in Tele Atlas qualifies as an associate.
In the normal course of business, TomTom purchases services from Tele Atlas. These transactions are conducted
on an arm’s length basis with terms that havenot changed compared with the terms that applied before we
acquired our interest in Tele Atlas.
For an overview of the Management Board’s compensation, reference is made to note 7, Employee benefits.