| Daniel Shen, Taipei; Adam Hwang, DIGITIMES [Tuesday 16 December 2008] Mitac International, a Taiwan-based maker of GPS (global positioning system) PNDs (portable navigation devices) on a ODM/OEM basis and for sale under its own brand Mio as well, on December 15 announced its has signed with California-based Magellan Navigation for acquisition of the latter's consumer GPS PND business at a price of up to US$96 million, according to Mitac's press release. The acquisition covers the whole assets/liabilities and operating resources of Megallen Navigation's consumer GPS PND business, including brand, trademark, software, intellectual properties, operating staff, client base and marketing network, Mitac pointed out. The final transaction price will be based on the market value of the items to be acquired on the closing date for the deal, but will not exceed US$96 million, Mitac indicated. The acquisition is expected to take effect in January 2009, Mitac added. Magellan is a leading brand of GPS PNDs in the North American market, with two in-car series RoadMate and Maestro as well as outdoor sports series Triton being its major product lines, Mitac noted. The acquisition will enhance Mitac's overall competitiveness in the market, Mitac emphasized. Mitac will operate business for each of its three own brands, Mio, Navman (acquired in March 2007) and Magellan, independently, the company pointed out. Mitac used to be an ODM/OEM maker for Magellan, according to industry sources in Taiwan. The deal will bring negative impact on Magellan's three existing Taiwan-based ODM/OEM makers, Kinpo Electronics, Wistron and Foxconn, as Mitac is expected to gradually decrease the outsourced production, the sources indicated. Magellan's market share in North America dropped from nearly 20% in the fourth quarter of 2007 to about 10% in the third quarter of 2008, and it seems to be opportune for Mitac to strike the deal to compete with TomTom and Garmin, the sources pointed out. |
