Garmin has signed a letter of intent to acquire its German distributor, GPS GmbH. Financial terms of the proposed transaction were not released. Following the acquisition, GPS GmbH is expected to change its name to Garmin Deutschland GmbH.
The company will retain its management, sales, marketing and supporting staff, consisting of approximately 60 people, and will continue operations at its current headquarters and warehouse facilities located close to Munich, Germany.
“The proposed acquisition of GPS GmbH is part of our strategic initiative to strengthen Garmin's presence in key European markets and to enhance our ability to support our key retailers and OEMs in these markets,” said Dr. Min Kao, chairman and CEO of Garmin Ltd.
The completion of the acquisition is subject to the negotiation and execution of a definitive acquisition agreement, the completion of legal and financial due diligence and customary closing conditions.
