US navigation specialist, Nasdaq-listed Garmin, is hoping to cash in on the potential growth that SA offers through its acquisition of its SA distributor, Garmin Distribution Africa.
Garmin International director of corporate communications Ted Gartner says: While Garmin’s North American and European markets are maturing, we still see the potential for significant growth in the area where Garmin Distribution Africa conducts its business.”
The two companies announced the proposed acquisition on Tuesday, saying the deal should be completed by June this year. Neither company is disclosing the value of the deal.
With growth potential in SA and the rest of the continent, Gartner says the acquisition will help Garmin more effectively support retailers and customers in the region. “It will allow Garmin Distribution Africa to capture more opportunities through full integration with the company,” he says.
After the acquisition is completed, Garmin Distribution Africa will be renamed Garmin Southern Africa and will continue operations at its headquarters in northern Johannesburg.
The deal is still subject to the completion of legal and financial due diligence and several other closing conditions, including regulatory approvals.
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
- Subscribe to our free daily newsletter
- Follow us on Twitter or on Facebook