There are some interesting developments on the navigation front, with news that Garmin Ltd. and navigation provider Navigon AG have signed an agreement for a subsidiary of Garmin to acquire the privately held Navigon AG ("Navigon").

Navigon will operate as a subsidiary of Garmin Ltd., with the acquisition subjected to regulatory approvals and other customary closing conditions. No financial terms of the transaction will be released.

Both companies manufacturer their own GPS devices, with obvious differences in design and map quality. Not much is known about the future working relationship between the companies or whether upcoming devices will be sold exclusively under the Garmin brand.

“This acquisition is a great complement to Garmin’s existing automotive and mobile business. Navigon has invested significantly in the European automotive OEM business, and we feel that we can rapidly expand our automotive OEM footprint and capabilities through this transaction,” said Cliff Pemble, Garmin’s president and COO.

“With Navigon, we are also acquiring one of the top-selling navigation applications for the iPhone and Android platforms – something that we expect will help drive revenue for the combined company going forward. Combining Navigon’s and Garmin’s strength also improves our competitiveness and standing particularly in Europe,” Pemble continued. Navigon announced in February that it had passed two million smartphone navigation app users worldwide.

Navigon is headquartered in Germany. In addition to its automotive OEM and navigation application for smartphones, the company has an estimated seven percent share in portable navigation devices (PNDs) in Europe.

“We look forward to sharing expertise, technologies, and relationships between Navigon and Garmin in order to serve more customers, expand product offerings, and lead the market in hardware and software innovation,” said Egon Minar, CEO of Navigon. “Our two companies each bring complementary strengths to the table, but what we share is a passion for customer satisfaction through innovation.”