SHAH CAPITAL PARTNERS SIGNS DEFINITIVE AGREEMENT TO PURCHASE GPS NAVIGATION BUSINESS OF THALES
Santa Clara, Calif. and Paris, France - July 20, 2006 - An investment group led by Shah Capital Partners (SCP) today announced they have reached a definitive agreement to acquire Thales Navigation, a division of Thales. Co-investors who participated with SCP in the transaction included Tudor Group, Galleon Group, Consolidated Press Holdings, AIG SunAmerica and Eli Broad. Thales Navigation is a leader in the consumer, survey, GIS and OEM GPS navigation and positioning markets.
Recognized as an industry innovator, the Company is the creator of the award-winning Magellan RoadMate series portable car navigation systems, the Magellan eXplorist outdoor handheld navigation devices, the Hertz NeverLost car navigation system and ProMark, the best-selling single-frequency GPS survey product line on the market. The company is recognized worldwide through its Magellan brand and has experienced 200 percent consumer revenue growth over the past three years as GPS technology has proliferated across a range of consumer and commercial applications.
The transaction is expected to close in the third quarter of 2006. The new company will be named Magellan Navigation, Inc. and will be headquartered in San Dimas, California.
"We are excited to work with such an industry leader in the high-growth navigation market," said Ajay Shah, managing partner of SCP. "Thales Navigation is well positioned with a number of core strengths, including leadership positions in both consumer and commercial markets, the strength of the Magellan brand, pervasive retail distribution and a strong technology portfolio. We are looking forward to working with the management team to build on these successes and continue the growth of the business as demand for navigation technology continues to expand."
"SCP is a great fit for Thales Navigation," said Henry Gaillard, chief executive officer of Thales Navigation. "This is an exciting new phase for the company. We intend to execute aggressively on our strategy to increase our leadership in the consumer, survey, GIS and OEM markets worldwide, and SCP is both committed and uniquely qualified to help us achieve even greater success as a stand alone company."
About Shah Capital PartnersShah Capital Partners (SCP) is a technology private equity firm, which brings unique strategic and financial expertise to build long-term equity value in partnership with experienced management teams. SCP develops its portfolio companies through their extensive knowledge in specific industry sectors, understanding of successful growth strategies, and operational know-how. SCP's experienced senior managers are from leading technology companies and financial institutions who appreciate the challenges of a modern technology business. www.shahcap.com
About ThalesThales is a leading international electronics and systems group, serving defence, aerospace and security markets worldwide, supported by a comprehensive services offering. The group's civil and military businesses develop in parallel to serve a single objective: the security of people, property and nations. Thales employs 60,000 people in 50 countries and generated revenues of € 10.3 billion in 2005, with a record order book of over € 20 billion.
About Thales NavigationThales Navigation is a global innovator of navigation and positioning solutions. The company markets its Magellan brand GPS products in vehicle navigation and outdoor markets, and its professional GPS and GNSS solutions in the survey, GIS/Mapping, and OEM markets that include consumer electronics, automotive navigation and high-precision applications.
Thales Navigation is headquartered in San Dimas, Calif., with European headquarters in Carquefou, France. For more information, visit www.thalesgroup.com/navigation.