Mitsubishi, NTT to buy 30% stake in digital mapping company HERE

Mitsubishi and NTT will co-invest in the Amsterdam-headquartered company through their newly established, jointly owned holding firm COCO Tech Holding B.V. in the Netherlands, HERE said on Friday.

HERE said the expanded shareholder structure will support the company’s ambitions to accelerate growth in new industries and markets and explore further strategic opportunities with MC and NTT.

HERE Technologies said Mitsubishi and NTT are co-investing in the company via their newly established, jointly owned holding company COCO Tech Holding BV in the Netherlands.

The transaction is expected to close in the first half of 2020, subject to regulatory approval. The parties have agreed not to disclose the financial details of the transaction, it added.

HERE is a location data and technology platform, providing a development environment (HERE Workspace), a data exchange (HERE Marketplace), map creation and visualization capabilities (HERE Studio) and a set of location services (HERE Location Services). These capabilities leverage the Reality Index, a rich source of location contextual data that captures relationships between places and things. The company has more than 9,000 employees across 56 countries.

“We are excited to welcome Mitsubishi Corporation and NTT as new strategic investors,” said Edzard Overbeek, CEO HERE Technologies. “We have been greatly inspired by our conversations. Mitsubishi Corporation and NTT share our vision of enabling an autonomous world for everyone and believe in our ability to harness our location platform to address major global challenges like urban congestion, supply chain inefficiency, and sustainable resource usage just to name a few. We will be honored to play a role in the digitalization initiatives of Mitsubishi Corporation and NTT. Their investment also means we are further diversifying our shareholder base beyond automotive, which is important given the appeal and necessity of location technology across geographies and industries.”

“We believe that HERE's Reality Index has unlimited potential,” said Takehiko Kakiuchi, president and CEO, Mitsubishi Corporation.

“The collaboration between HERE's location technology and the business momentum of MC and NTT will generate great business opportunities. I look forward to delivering valuable solutions for all customers together,” said Jun Sawada, president and CEO, NTT.

MC and NTT are acquiring the stake by purchasing new shares as well as acquiring existing shares from current HERE shareholders. This is in line with the strategic goal of having a broadened shareholder structure for HERE.

Upon completion of the transaction, HERE would have nine direct and indirect shareholders: Audi, Bosch, BMW Group, Continental, Intel Capital, MC, Mercedes-Benz, NTT and Pioneer. 

With these new Japanese investors, HERE will have a springboard to accelerate growth in the Asia Pacific region. To support its long-term regional growth ambitions, HERE is currently in preliminary exploratory talks with both MC and NTT on strategic initiatives that would include supporting both companies’ digitalization efforts.

HERE has been growing its presence in Asia Pacific during the past three years, through the recent extension of HERE Workspace along with a suite of HERE Location Services into Japan.