Thales Co. signed an agreement to divest the majority of its satellite navigation business to an investor group led by private equity firm Shah Capital Partners for $170 million, the companies announced July 20. The deal is expected to close in the third quarter.

Thales Navigation produces consumer, survey and GIS navigation and positioning equipment and has roughly 600 employees located in San Dimas and Santa Clara, Calif., Moscow and Nantes, France. The company will be renamed Magellan Navigation Inc. after one of its lines of navigation units.

“Thales Navigation brings key assets toward potential growth, including leadership positions in its key markets, the strength of the Magellan brand, pervasive retail distribution, and the Hertz joint venture and Hertz Neverlost brand,” Ajay Shah, managing partner at Shah, said in a statement. “We’re looking forward to working with the management to build on these successes and grow the entire business.”

The Shah group includes Tudor Group, Galleon Management, Consolidated Press Holdings, AIG Sunamerica and Westwood Holdings.