Garmin, the top maker of car navigation systems, is trying to expand by acquiring Navigon, a rival company. Garmin hopes that the deal, announced on Tuesday, will lift its business in Europe, in particular, and give it greater momentum in mobile phone apps.
Garmin and the shareholders of Navigon AG have signed an agreement for a subsidiary of Garmin to acquire privately-held navigation provider Navigon AG.
"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 strengths 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.
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, Garmin said.
Garmin provides a broad range of in-vehicle electronics for the automotive industry, including automotive grade infotainment and telematics systems, navigation software, and integrated portable navigation systems.