Sat-nav maker TomTom is to buy Tele Atlas, the company that provides the maps featured in its popular GPS devices.

TomTom has put in a bid of £1.2 billion for Tele Atlas so that the hardware maker can improve the digital mapping software it uses in its 10 million sat-nav devices.

The deal is expected to be sealed by the end of the year. If and when it does, TomTom said its customers would receive daily mapping updates to correct incorrect information. It will also gather statistics on how traffic flows to create new features such as predicting traffic jams.

TomTom also plans to integrate a social-networking type information service to the mapping data. "By integrating customer feedback into the Tele Atlas map manufacturing process, we will be able to considerably enhance the user experience and further increase all Tele Atlas and all TomTom's customers' satisfaction," said TomTom CEO Harold Goddijn.

Tele Atlas also supplies online maps for websites such as Google Maps , as well as for devices such as the Nokia N95 .