Magellan Navigation revealed this morning that it will be selling its consumer products division to MiTAC International, owner of the Mio PND brand. The transaction is expected to close in January 2009, but so far no financial details have been disclosed. Back in 2006 Magellan, under the ownership of Thales Navigation, was purchased by a group led by US-based Shah Capital Partners for $170 million. Since then Magellan, maker of Triton, Maestro, and RoadMate navigation systems, has struggled internally. Earlier this year it fired CEO Nelson Chan after badly falling behind both Garmin and TomTom in the United States market in the last couple of years. In fact it’s very likely the upstart Navigon could remove Magellan from its 3rd place slot in the United States by the end of 2008.
GPS Business News points out the after MiTAC purchased Navman for $16 million almost two years ago, it has failed to make the PND brand a success. Especially in markets where both Mio and Navman PNDs are sold. It’s likely that if MiTAC can revive the Magellan brand in the United States, it’ll pull Mio out of the market as Mio hasn’t been successful there.
No matter what MiTAC does though, without adding some new and innovative products to the Magellan line the brand will continue to struggle. The PND industry consolidation looks to have begun.
