Garmin was quite busy during the first week of the New Year, closing two separate acquisitions. The first was Garmins former French distributor, EME Tec Sat SAS, which the company acquired for an undisclosed sum, and the second was Digital Cyclone, which Garmin acquired for $45 million in cash. Both deals are expected to be accretive to GRMN earnings for fiscal 2007.
Following the acquisition, EME will change its name to Garmin France SAS. The company will retain its management, sales, marketing, and supporting staff, consisting of approximately 50 people, and will continue to be located at its current headquarters in Nanterre, a suburb of Paris.
Digital Cyclone, or DCI, is located in Minnetonka, Minn. and employs approximately 20 people including management, marketing/sales, and product development. It will operate as a subsidiary of Garmin Ltd. The company will retain its management, R&D, and supporting staff and will continue to be located at its current Minnesota headquarters.
Garmin management said that DCI has been an “early mover” in the location based services market offering weather solutions. The company delivers weather models to consumers through partnerships with several national and regional wireless carriers.
