GPS manufacturer Garmin is rumored to be preparing for a buyout of competitor Navigon. The rumor comes at a time when Navigon has watched share prices collapse under a tightening GPS market, that could mean Garmin picks up the manufacturer for in the vicinity of several tens of millions of Euros, far less than the company’s value just several short years ago.
If the rumor is correct the deal could go through before the end of June, providing General Atlantic Partners with far less money than they would have hoped to gain when they bought a 90 percent state in Navigon way back in 2005.
At this time both Garmin and Navigon are refusing to comment on the possible buyout. You may recall that in 2007 Navigon attempted to expand operations into the United States, right at the same time that the iPhone reached the market and Google Maps began to extend their reach on mobile devices with no associated costs.
By 2009 Google had announced turn-by-turn voice directions and stock in GPS companies plummeted among a slowing demand for dedicated systems and plummeting retail prices as Garmin and TomTom fought for remaining market share worldwide.