Garmin Ltd. has signed letters of intent for the proposed acquisition of Puls Elektronik GmbH (“Puls Elektronik”), the distributor of Garmin's consumer products in Austria and Satsignal Equipamentos de Comunicacoes e de Navegacao S.A. (“Satsignal”), the distributor of Garmin's consumer products in Portugal. The completion of each of these acquisitions is subject to the negotiation and execution of a definitive acquisition agreement, the completion of legal and financial due diligence and customary closing conditions. The acquisitions are expected to be completed by August 2008.
Financial terms of the proposed transactions were not released. Following the acquisition, Puls Elektronik is expected to change its name to Garmin Austria GmbH. and Satsignal is expected to change its name to Garmin Portugal S.A. Puls Elektronik and Satsignal will each retain their management, sales, marketing and supporting staff, consisting of 30 people and 15 people respectively, and will continue operations at their current headquarters located respectively in Graz, Austria and Lisbon, Portugal.
Dr. Min Kao, chairman and CEO of Garmin Ltd., said, “These proposed acquisitions are a continuation of our successful strategy of enhancing our ability to support key retailers and OEMs in European markets. We have to date acquired our distributors in five European countries. These acquisitions have enabled us to increase our European market share and further solidify our position as the global leader in satellite navigation. The proposed acquisitions of Puls Elektronik and Satsignal, together with the previously announced, pending acquisitions of our distributors in
Dr. Hartwig Strobl, managing director of Puls Elektronik, said, “We are very proud of our achievements in building the Garmin brand into a leading position in
Carlos Martins, managing director of Satsignal, said, “As the distributor in Portugal of Garmin's automotive/mobile, marine and outdoor/fitness products since 2002, we at Satsignal are also proud of our achievements in building the Garmin brand in Portugal. We expect to be able to achieve additional efficiencies and capture more opportunities through full integration into Garmin.”
About Garmin Ltd.
The global leader in satellite navigation, Garmin Ltd. and its subsidiaries have designed, manufactured, marketed and sold navigation, communication and information devices and applications since 1989 — most of which are enabled by GPS technology. Garmin's products serve automotive, mobile, wireless, outdoor recreation, marine, aviation, and OEM applications. Garmin Ltd. is incorporated in the Cayman Islands, and its principal subsidiaries are located in the
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