Garmin Drops Tele Atlas Bid; TomTom Wins The Fight

Garmin Ltd. reported Friday that it has dropped its offer for digital data map provider Tele Atlas NV and instead has signed a six-year extension to its existing agreement with Navteq.

Garmin had been in a bidding contest with TomTom The bidding for Tele Atlas began last summer when TomTom offered $2.8 billion for the firm. After Garmin entered the contest with a higher bid, TomTom countered with an offer of $4.2 billion.

In the midst of the bidding contest for Tele Atlas, Nokia bought Garmin rival Navteq for $8.1 billion.

In announcing it would drop its bid for Tele Atlas, Garmin noted that it has partnered with Navteq for years. "We utilize their map data in the majority of our products and we have always appreciated their commitment to the market," said Garmin CEO Min Kao in a statement. "We believe the outcome creates the best value for Garmin, our customers, and stakeholders."

On Thursday Garmin and TomTom announced they had settled patent disputes.