Garmin To Buy Italian Distributor After Posting Record Second Quarter
Navigation and communications devices manufacturer Garmin Ltd. has signed a letter of intent to acquire Synergy S.p.A., the distributor of Garmin’s consumer products in Italy, Garmin announced Aug. 3. Financial terms of the proposed deal were not disclosed.
The move is intended to further strengthen Garmin’s European sales and marketing presence. Earlier this year, Garmin acquired both the French and German distributors of its products, and in July Garmin signed a letter of intent to purchase its Spanish distributor.
Synergy is expected to change its name to Garmin Italia S.p.A and continue operations at its established headquarters in Milan, Garmin said.
The move comes two days after Garmin announced a record second quarter. The company reported total revenue of $742 million for the three months that ended June 30, up more than 71 percent from $433 million in second quarter of 2006.
Contributing to the record second quarter were increased figures across the board: A 99 percent increase, to $508 million, in its automotive/mobile segment revenue; a 39 percent increase, to $78 million, in its aviation segment; a 9 percent increase, to $77 million, in its outdoor/fitness segment; and a 59 percent increase, to $80 million, in its marine segment.
All geographic areas experienced significant growth as well. In North America, revenue was up 95 percent, or $455 million compared to $233 million; in Europe revenue was up 44 percent, or $257 million compared to $178 million; in Asia revenue was up nearly 41 percent, or $31 million compared to $22 million.
Garmin now forecasts that its 2007 revenue will exceed $2.8 billion.