US navigation specialist, the Nasdaq-listed Garmin, is setting up shop in SA. The company has signed a letter of intent to acquire its local distributor, Garmin Distribution Africa. Terms of the deal have not been disclosed.
“Garmin Distribution Africa has been our SA distributor for nearly two decades, and this acquisition will strengthen our ties to our retailers and customers in this region,” says Garmin CEO and chairman Min Kao.
After the acquisition is completed, the company will be renamed Garmin Southern Africa and will continue operations at its headquarters in northern Johannesburg.
Garmin Distribution Africa CEO Richard Fearon says the transaction “demonstrates the confidence that Garmin has in SA, and the importance that it places in our office as being key to further developing Garmin’s African business”.
The deal is still subject to the completion of legal and financial due diligence and several other closing conditions, including regulatory approvals.
Garmin expects to complete the transaction in June.
Garmin, which has a market capitalisation of US$7bn, is a manufacturer of devices that use the Global Positioning System of satellites. Its products include navigation devices for the automotive, marine, aviation and outdoor markets. — Staff reporter, TechCentral
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