Garmin in talks to buy peer Navigon - paper
FRANKFURT, June 3
FRANKFURT, June 3 (Reuters) - Garmin (GRMN.O) is in negotiations to buy German maker of navigation devices Navigon for around 50 million euros ($72.14 million), a German daily reported on Friday, citing people familiar with the talks.
According to the Financial Times Deutschland the "mid-double-digit million euro" deal could be sealed this month.
Navigon is 90 percent owned by private equity firm General Atlantic Partners and offers personal navigation devices (PNDs), a must-have gadget for car owners not so long ago.
The sector came under severe pressure after Nokia (NOK1V.HE) and Google (GOOG.O) started offering free navigation services, forcing Navigon and market leaders Garmin and TomTom (TOM2.AS) to look for additional services.
Garmin and TomTom are trying to reduce their reliance on PNDs while turning themselves from a one-product firm to a content and services franchise by offering live traffic and mapping services.
The modest price Garmin is willing to pay for Navigon reflects the problems in the industry, a source told the paper.
"For General Atlantic this will no longer be a performing investment," the source was quoted as saying.
General Atlantic declined to comment, while Navigon and Garmin could not immediately be reached for comment. ($1=.6931 Euro) (Reporting by Harro ten Wolde; Editing by Jon Loades-Carter)
- Tearful Thai PM urges protesters to take part in election
- Google bus blocked in San Francisco gentrification protest
- North Korea's 'reign of terror' worries South's leader
- Chinese hackers spied on Europeans before G20 meeting: researcher
- Putin dissolves state news agency, tightens grip on Russia media