Garmin Ltd. (NASDAQ: GRMN) is a company that most Americans have historically used for auto navigation. Now that smartphones have taken over much of that market for free or nearly free, Garmin has been trying to reinvent itself. From boat navigation, to international market expansion, to using positioning services for exercise and recreation, the company is trying to position itself for the future.
A new announcement this morning would appear to be an implied cost saving acquisition rather than a true expansion. Garmin announced the acquisition of Garmin Distribution Africa (Pty) Ltd. (GDA). This company is Garmin’s distributor of Garmin’s automotive, outdoor recreation, fitness and marine products in Southern Africa. It is also acquiring Garmap (Pty) Ltd., a South African mapping and mobile applications provider.
Financial terms were not disclosed, but the company said it will continue operations at its current headquarters and warehouse facility outside of Johannesburg with about 70 associates.
Garmin’s stock has fought off the erosion trends so far as its share price is $33.73 and the 52-week trading range is $28.49 to $36.42. To show just how cautious the field is, Thomson Reuters has a consensus price target objective of $34.13 and the short interest is about 19 days to cover with some 22,381,340 shares listed as the most recent short interest.
JON C. OGG
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