Intel closes navigation app developer Telmap

Telmap is now assessing more than 150 employees in Israel and notifying them who will go to Intel and who will be fired.

Sources inform ''Globes'' that Intel Corporation (Nasdaq: INTC) is closing Telmap Ltd., the developer of the M8 navigation app. Telmap's efforts to streamline and change its strategy, which "Globes" reported on Thursday, have failed. "Globes" reported that Telmap, which Intel acquired for $120 million in 2011, was firing scores of employees.

On Thursday, Telmap employees read about the pending layoffs in the press, without any prior notification from the company. Only today were some employees notified that they would be transferred to Intel Israel Ltd. Telmap is now assessing employees and notifying them who will go to Intel and who will be fired.

On Thursday, Telmap Israel director of operations Uri Kushnir told "Globes" that he was unaware of any layoffs. The company's management was apparently unaware of the pending closure; just a week earlier it announced a cooperation agreement with Israeli start-up Anagog Ltd. to integrate the latter's BabyMinder app to prevent forgetting infants in cars with the M8 navigation app.

Telmap declined to comment on the company's closing, directing inquires to Intel Israel. Intel Israel said, "Intel is prioritizing its business activities. As a result, Intel has decided to close Telmap and to quit the navigation solutions for private consumers and White Label (offering the app under labels other than Telmap - T.H.) business."

The M8 app, which can be downloaded for iPhones and Android devices, will continue to function in Israel and other countries. Telmap will continue to honor its contracts with mobile carriers until they expire.

Telmap's M8 app competes against Waze Ltd. In February, Telmap changed its business model to offer its navigation app for free, but since the switch to the new free business model, Telmap has not been able to compete. Google Inc. (Nasdaq: GOOG) confirmed in its financial report for the second quarter of 2013 that it paid $966 million for Waze.

Telmap was founded in 2000 and had $33 million revenue in 2012. The company has more than 200 employees iof whom more than 150 are in Israel.

Published by Globes [online], Israel business news - www.globes-online.com - on July 28, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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