Garmin Acquires Competitor Navigon: Industry Implications

In a strategic move to consolidate its market position, Garmin, a leader in GPS technology for automotive and mobile applications, has entered into an agreement to acquire Navigon AG, a key player in the industry. This acquisition is set to enhance Garmin’s footprint, especially in the European automotive sector.

Cliff Pemble, President and COO of Garmin, expressed enthusiasm about the acquisition: “Navigon is a perfect fit for Garmin’s automotive and mobile segments. They have made substantial inroads into the European OEM market, and by integrating their operations with ours, we anticipate a significant expansion in our automotive OEM capabilities.

Additionally, Navigon brings to the table top-tier navigation apps for iPhone and Android, which will undoubtedly boost our revenue streams. This merger not only enhances our competitive edge in Europe but also strengthens our overall market position.”

The completion of this deal is subject to regulatory approvals. Garmin, although based in Switzerland, has a substantial operational presence in the United States, while Navigon operates out of Germany.

The integration of these two companies will be closely watched by industry observers and users alike, particularly those who use Garmin and Navigon applications.

The Garmin StreetPilot app, which requires map downloads during travel, and the Navigon apps, which include pre-loaded maps but use data for additional services like Google searches and weather updates, may see changes. It remains uncertain whether the Navigon brand will be retained post-acquisition.

Comparatively, the Garmin app has received lower ratings than the Navigon apps. In personal evaluations, the Garmin app underperformed in areas with weak 3G signals unless the maps were pre-loaded.


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