Navigation product manufacturer Garmin has acquired rival privately held business Navigon AG, in a deal which is part of its strategy to expand its mobile app services.

Navigation product manufacturer Garmin has acquired rival privately held business Navigon AG, in a deal which is part of its strategy to expand its mobile app services.

The deal, for an undisclosed amount, is for a German-based business which manufactures GPS orientation for personal navigation devices, smartphones and other platforms. The company has subsidiaries in Europe, Asia and North America.

Garmin’s president and chief operating officer, Cliff Pemble says that on the back of Navigon’s recent investment in the European automotive original equipment manufacture business, Garmin can expand on its footprint and capabilities in the market.

Pemble adds: ‘With Navigon, we are also acquiring on of the top-selling navigation applications for the iPhone and Android platforms – something that we expect will help drive revenue for the combined company going forward.’

Under the terms of the deal Navigon will operate as a subsidiary of Garmin Ltd, the UK arm of the American-headquartered company.

According to a statement combining Garmin and Navigon improves Garmin’s competitiveness and standing in Europe.

Egon Minar, chief executive officer of Navigon, comments: ‘Our two companies each bring complementary strengths to the table, but what we share is a passion for customer satisfaction through innovation.’

Founded in 1989, Garmin has manufactured 85 million GPS enabled devices.