Garmin Ltd. has agreed to acquire Navigon AG, a German company that has a seven percent share in portable navigations devices (PND) and top selling navigation apps for the iPhone and Android platforms in Europe.


The deal comes as many wonder whether smartphones are cannibalizing the PND business.

 
The acquisition would enable Garmin to rapidly expand its OEM business with European automakers, where Navigon has invested significantly said Cliff Pemble, Garmins 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 Navigons and Garmins strengths also improves our competitiveness and standing, particularly in Europe.

In addition to its automotive OEM and navigation application for smartphones, Navigon has an estimated seven percent share in portable navigation devices (PNDs) in Europe. It PNDs are known for their compelling design, performance, and innovative software features, Garmin said.

 

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 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.

Since its inception in 1989, Garmin has delivered 85 million GPS enabled devices-far more than any other navigation provider.