Navigation services market has started consolidating and now we have Garmin announcing that it has signed an agreement to acquire privately-held Navigon AG. Headquartered in Germany, Navigon provides automotive OEM and navigation applications for smartphones, while also commanding a 7% share in portable navigation devices (PNDs) in Europe. In addition, the company has a number of apps for iOS and Android mobile platform.
Under the plan, 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.
And we have a comment from Cliff Pemble, Garmin’s president and COO – he said: “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. 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.”