DoCoMo, Pioneer Enters Into A $50 Million Worth Business And Capital Alliance, Acquires 7% Pioneer Stake

Posted on May 13 2013 - 4:38pm by Editorial Staff

Japan’s NTT DoCoMo today announced that it has entered into an agreement with Pioneer on a business and capital alliance. Under the capital alliance, DoCoMo will invest about five billion yen (about $50 million) to acquire 7% stake of Pioneer through a third-party allocation on this coming June 28.

The alliance will integrate Pioneer’s in-car navigation telematics technologies and related peripheral development capabilities with DoCoMo’s mobile cloud expertise to develop a cloud-based intelligent transport system (ITS) that will be leveraged for future services. Along with this, the duo will develop and sell compatible car-mounted communication devices.

This makes an interesting deal, letting app developers to work on in-car entertainment system, which in turn allow users to seek a “connected experience” in their car.

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