BEIJING, March 22, 2011 (GLOBE NEWSWIRE) -- AutoNavi Holdings Limited ("AutoNavi" or the "Company") (Nasdaq:AMAP), a leading provider of digital map content and navigation and location-based solutions (LBS) in China, today announced it has entered into an agreement to fully acquire PDAger Mobility Inc. ("PDAger"), a location-based service provider in China and major partner in China Telecom's mobile navigation business. Under the terms of the agreement, AutoNavi, which had previously made a strategic investment resulting in a 20% ownership stake in PDAger, will acquire the remaining 80% stake from other PDAger shareholders for a total cash consideration of approximately US$8.3 million.
PDAger was founded in 2001 and was one of the first companies to offer mobile navigation applications in China. PDAger has cooperated with China's leading smart phone makers to pre-install "NaviTo," a personal navigation application, across various popular handsets. Beginning in July 2010, PDAger partnered with China Telecom to develop and operate "E Navi," a 3G mobile navigation application of "E Surfing," an industry leading 3G services brand offered by China Telecom. "E Navi" provides smart phone users with mapping, local search, routing, turn-by-turn voice-guided navigation, GPS services, real-time traffic information and access to in-depth points of interest across China.
AutoNavi's chief executive officer, Mr. Congwu Cheng, commented, "PDAger's partnership with China Telecom demonstrates PDAger's trusted research, development and marketing capabilities. By fully integrating PDAger into our Location-based Solutions business, we will capitalize on PDAger's mobile navigation solutions and relationship with China Telecom to further enhance AutoNavi's leading position in China's LBS market."
Mr. Cheng added, "China has the largest number of mobile subscribers in the world, and China Telecom, with its high-speed and stable CDMA network, is one of the fastest growing of the three Chinese telecom carriers. According to China Telecom's annual results announcement on March 22, 2011, the company had 12.3 million 3G mobile subscribers in 2010, an increase of 202% over its 3G subscriber base in 2009, representing 13.6% of its total mobile subscribers. By leveraging PDAger's high-quality products and partnering capabilities, AutoNavi will have a new gateway to a growing user base that is bolstered by China Telecom's strong growth and the expansion of 3G mobile internet usage in China."
Ms. Hongling Yan, PDAger's general manager, added, "Having developed an efficient business model and strategic partnerships with handset makers and carriers alike, we are pleased to have been chosen to become a part of AutoNavi's growing LBS business, and are confident that both companies' areas of expertise in China's LBS industry will be successfully leveraged. By combining the technical expertise and competitive advantages of PDAger and AutoNavi, mobile subscribers will benefit from our cutting edge navigation applications and solutions, across multiple handset makers and operating platforms."
Completion of the acquisition is subject to certain customary closing conditions. The transaction has been approved by the boards of directors for both AutoNavi and PDAger and no approval by AutoNavi's shareholders is required.
About AutoNavi Holdings Limited
AutoNavi Holdings Limited (Nasdaq:AMAP) is a leading provider of digital map content and navigation and location-based solutions in China. At the core of its business is a comprehensive nationwide digital map database that covers approximately 3.1 million kilometers of roadway and over 13 million points of interest across China. Through its digital map database and proprietary technology platform, AutoNavi provides comprehensive, integrated navigation and location-based solutions optimized for the Chinese market and users, including automotive navigation solutions, public sector and enterprise applications, wireless location-based solutions and Internet location-based solutions. For more information on AutoNavi, please visit .
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Forward Looking Statements
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the Business Outlook section and quotations from management in this press release, as well as AutoNavi's strategic and operational plans, contain forward-looking statements. AutoNavi may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about AutoNavi's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: AutoNavi's ability to adequately maintain and update its digital map database and minimize errors in its solutions; its current reliance on the automotive navigation market and a small number of customers for a substantial portion of its revenues; the project-based nature of its public sector and enterprise applications business; its limited operating history in the wireless/Internet location-based solutions markets; compliance with a complex set of laws, rules and regulations governing its surveying and mapping and other businesses in China; competition in the navigation and location-based solutions businesses in China; and its ability to manage its growth effectively and efficiently. Further information regarding these and other risks is included in AutoNavi's registration statement on Form F-1 filed with the Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and AutoNavi undertakes no duty to update such information, except as required under applicable law.