Navman Wireless OEM Solutions, a Foothill Ranch-based GPS technology provider, is set to be acquired by a North Carolina company.
Navman, a unit of Illinois-based Navman Wireless, struck a deal with Raleigh-based Telit Wireless Solutions for $3 million cash.
The transaction is set to close Jan. 3.
Executives have been shopping the unit for a few years, according to George Arnott, vice president of the group.
The companies have been in discussions for about a year.
Telit specializes in machine-to-machine communications and saw an opportunity to gain traction in the growing GPS market, according to Chief Executive Oozi Cats.
Telit makes modems, which are needed to carry GPS data to an end-user.
GPS device shipments are projected to grow more than 20% annually through 2013 to more than 900 million units, topping $70 billion in yearly sales, according to India-based market researcher RNCOS.
Navman Wireless OEM provides its tiny GPS modules—about 11 by 11 millimeters in size—to military defense companies such as Harris Corp. in Rochester, N.Y., commercial outfits such as Ohio-based Escort Inc., and government agencies.
About 80% of its business is commercial, according to Arnott.
Its modules are used in a variety of applications, from alerting drivers of oncoming red lights and fleet monitoring to helping taxi drivers navigate traffic.
“We do some exotic GPS positioning,” Arnott said.
The company is expected to earn about $200,000 in adjusted profits this year on $7.1 million in revenue.
