Amsterdam, The Netherlands — Dutch navigation device maker TomTom NV plans to sell new shares to raise 430 million euros, or about $600 million, to pay off some of its significant debt, said the Associated Press.
TomTom’s heavy debt stems from its purchase of Tele Atlas in June last year for $4.3 billion.
In April, TomTom reported its revenue fell by 31 percent in the first quarter ending March 31, and that it had a net debt of $1.5 billion. Also, for the quarter, TomTom’s revenue from personal navigation devices fell to $182 million, compared with $303 million a year earlier.
In a statement late Sunday, TomTom CEO Harold Goddijn said the share offering “provides us with a substantially strengthened balance sheet,” according to the AP.
TomTom did not immediately respond to a TWICE inquiry.