Shares of MiTAC International Corp (
Shares of MiTAC, the world's biggest manufacturer of GPS devices on a contract basis, rose 1.6 percent to close the day at NT$37.25 (US$1.13) on the local bourse yesterday.
MiTAC said it would acquire a portable navigation device (PND) unit and the Navman brand from Brunswick via its overseas subsidiary, Silver Star Developments Ltd.
The 100-percent acquisition also includes subsidiaries under Brunswick's PND business -- Navman Europe Ltd, Naviart Ltd (Hong Kong) and Naviart Information Technology Ltd (China) -- said Billy Ho (何繼武), president of MiTAC, in a briefing held at the Taiwan Stock Exchange yesterday.
"We expect the move will help boost MiTAC's sales and global market share of GPS devices ? MiTAC will become a leading player in the PND area capable of integrating innovation, technology, product manufacturing and marketing," Ho said.
As the two parties have only signed a definite agreement, with the deal expected to be closed by the end of next month, terms of the transaction were not yet available as MiTAC is still evaluating financial figures, he added.
The US firm welcomed the buyout deal.
"We are pleased to have found a strategic buyer with expertise and technologies central to PND products," said Dustan McCoy, Brunswick chairman and chief executive officer, on the firm's Web site.
"We believe such a buyer is more apt to fully appreciate every segment of the business and will be able to focus on this business' technological expertise, helping it reach its full potential," he said.
Last year, MiTAC shipped 4.5 million GPS devices. It expected the figure to grow to between 6 million and 7 million units this year, including its Mio brand products and original design manufacturing [ODM] units.
Brunswick has sold over 1 million Navman-branded GPS products per year, taking a leading position in Europe.
After taking on Brunswick's GPS operations, Ho expected Mio's market ranking in Europe to advance to second spot, from the current third or fourth place.
Its market share in the US would also move forward from the current fourth place and remain the No. 1 brand in the rest of the world, Ho said.
As Navman has become a well-known brand name since its establishment, MiTAC said that Navman and Mio will remain two independent brands under its operations, although a better market segmentation would be achieved.
Asked how the company can guarantee smooth integration with a foreign business, Ho expressed confidence, saying that MiTAC has had business interaction with Brunswick for three years and is familiar with most of its management.
"I believe we can build a common platform and iron out cultural differences via communications," he said.
MiTAC said it earned NT$3.65 billion, or NT$2.98 per share, in the first nine months of last year.
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