As expected, Garmin announced it plans to buy Navigon, a German maker of portable navigation devices (PNDs) and a developer of GPS apps for smartphones.
The companies have signed an agreement where Navigon will become a subsidiary of Garmin.
Navigon should help Garmin win a better foothold in the European auto OEM business and it also strengthens Garmin’s role in GPS apps.
“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,” said Garmin president and COO Cliff Pemble.
Since 1989, Garmin has delivered 85 million GPS enabled devices – far more than any other navigation provider, it said.
Financial terms of the deal were not disclosed, but Reuters had reported earlier a tentative possible purchase price of $72 million. –Lynn Shannon
Source: Garmin
