Garmin Bids on Raymarine

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Garmin is back to trying to purchase UK-based marine electronics supplier Raymarine, reportedly for 15 pounds ($22.8) per share. But U.S. journalists are forbidden from downloading the news release, due to SEC regulations so we’re referencing a story in UK-based Motor Boat & Yachting. The deal values debt-laden Raymarine at the equivalent of $19 million dollars. The report says Raymarine is struggling with about $137 million worth of debt and has received numerous purchase bids, but Garmin’s is the highest.
Apparently Garmin believes boaters are not going to be relying on their smartphones to navigate so marine electronics might be a solid investment. Garmin announces its first quarter earnings on Wednesday, May 5 next week. But the GPS-maker’s fourth quarter earnings showed marine electronics revenues were up 2 percent for Garmin or $34 million for the period ended in December 2009.
The news apparently sent Raymarine’s stock soaring 130 percent on Wednesday. Garmin and Raymarine had been reported to be in talks late last year that failed to reach a deal.
Source: Motor Boat & Yachting and Garmin

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