Garmin To Purchase Navigon
The Garmin plans to acquire Navigon leaked out earlier this month, now there is a official word from the GPS giant will bring the smaller company under its wing in July. The regulatory approval is pending, the deal would have Navigon, one of the largest GPS brands in Europe, functions as a subsidiary of Garmin, got much stronger presence in North America. The companies were unable to reveal any financial information, but the priced the deal in the mid double eight million Euro range. It will take major effects in the US, where the company has smartphone apps but hasnt sold dedicated GPS devices in several years. For more details read the press release
Here is the Press Release
Garmin Ltd. Announces Signing of Agreement To Acquire Navigon AG
Schaffhausen, Switzerland and Hamburg, Germany /June 14, 2011/Business Wire - Garmin Ltd. (Nasdaq: GRMN) and Navigon AG announced today that Garmin Ltd. and the shareholders of Navigon AG have signed an agreement for a subsidiary of Garmin to acquire privately-held navigation provider Navigon AG ("Navigon").
"This acquisition is a great complement to Garmin's existing automotive and mobile business. Navigon has invested significantly in the European automotive OEM business, and we feel that we can rapidly expand our automotive OEM footprint and capabilities through this transaction," said Cliff Pemble, Garmin's president and COO. "With Navigon, we are also acquiring one of the top-selling navigation applications for the iPhone and Android platforms something that we expect will help drive revenue for the combined company going forward. Combining Navigon's and Garmin's strength also improves our competitiveness and standing particularly in Europe."
Navigon is headquartered in Germany. In addition to its automotive OEM and navigation application for smartphones, the company has an estimated seven percent share in portable navigation devices (PNDs) in Europe. In regards to PNDs, Navigon's products are known for their compelling design, performance, and innovative software features.
"We look forward to sharing expertise, technologies, and relationships between Navigon and Garmin in order to serve more customers, expand product offerings, and lead the market in hardware and software innovation," said Egon Minar, CEO of Navigon. "Our two companies each bring complementary strengths to the table, but what we share is a passion for customer satisfaction through innovation."
Navigon will operate as a subsidiary of Garmin Ltd. The acquisition is subject to regulatory approvals and other customary closing conditions. Financial terms of the transaction will not be released.