DULLES, Va. -- America Online Inc. is buying MapQuest.com Inc., a leading provider of maps on the Internet, in a $1.1 billion deal that adds a popular Web service to AOL's arsenal of online offerings to consumers and businesses.
AOL said today it plans to offer the MapQuest service to mainstream Internet users as well as to people using hand-held gadgets, such as "smart" cellular phones, Palm Pilot organizers and other emerging alternatives to the desktop computer.MapQuest.com, based in Lancaster, Pa., gets 3.7 million visitors monthly to its popular Web site, where users can type in a destination and then see a map and directions to help them get there. MapQuest also provides maps to show locations of restaurants, stores and other places.
MapQuest was the 49th most visited Web site last month, according to the Media Metrix Web-tracking firm.
In addition to targeting consumers, MapQuest.com licenses its technology to more than 950 businesses, which provide directions to the public on their Internet sites or to employees on internal Web sites.
MapQuest.com has "built a strong brand that is recognized as the place to turn for online maps and directions," AOL president Bob Pittman said.
AOL, the world's largest Internet service provider with about 20 million subscribers, will pay 0.31558 shares of its common stock for each share of MapQuest stock.
The deal is worth $1.1 billion at AOL's stock price of $85 late Tuesday. The AOL offer values MapQuest's stock below its high-flying price. MapQuest's stock dropped 21 percent in morning trading, down $6.75 a share to $25.75 on the Nasdaq Stock Market.
AOL stock edged lower, dropping 683/4 cents a share to $84.83 on the New York Stock Exchange.
Michael Mulligan, chairman and chief executive of MapQuest.com, said partnering with AOL will allow its maps to reach even more people. MapQuest.com offers its service in five languages and its maps cover 78 countries.