Garmin Abandons Tele Atlas Bid

GPS Maker Garmin has withdrawn its bid for digital map maker Tele Atlas, and entered into a long-term deal with mapmaker (and recent Nokia acquiree) Navteq.

GPS maker Garmin International has formally withdrawn its offer to buy digital mapmaker Tele Atlas, while at the same time announcing it has entered an agreement with rival mapmaker Navteq which will enable Garmin to continue using Navteq map data through the year 2015.

“Garmin has partnered with Navteq for many years,” said Garmin CEO Dr. Min Kao. “Extending our agreement with Navteq ensures the availability of quality mapping data for our customers, and provides a basis for enhanced cooperation which is a win-win for both Garmin and Navteq.”

Navteq and Tele Atlas are the two primary suppliers of mapping and routing information for the entire mobile industry; Finland’s Nokia recently announced it is buying Navteq for $8.1 billion, while Garmin rival TomTom has been courting Navteq for some time, and recently raised its offer for the company to counter Garmin’s buyout proposal. TomTom’s offer for Tele Atlas currently stands at about $4.2 billion.

Neither Garmin nor Navteq disclosed any financial particulars of their new agreement, noting only that they have agree to expand their cooperation to improve map quality and coverage, as well as drive future device innovation.