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MiTAC, the parent company that makes the low-end Mio brand GPS units, has acquired Magellan's consumer GPS division. The press release doesn't specify what will become of Magellan, it's employees, or products, saying only that the sale will complete in January 2009.
Magellan has struggled over the past few years, changing owners several times (Shah Capital Partners, most recently). Magellan once dominated the GPS market, and was considered one of the most innovative companies around. Back when Orbital Sciences owned it, ground-breaking products like the Pathmaster and 750NAV set new standards in GPS navigation, and Magellan enjoyed almost 90% market share.
It's been a fairly steady decline ever since, and today Magellan is plagued by poor customer support, buggy products that are rushed to market before they're ready, and inconsistency across the various Maestro and RoadMate GPS units. Magellan has also struggled to find it's place in the market, fluctuating between the high-end, mid-range, and low-end.
The Magellan name is well known in North America, and its products are sold at most major retail chains, including Wal-Mart, Radio Shack, Target, and Best Buy. Magellan, along with competitors TomTom and Garmin, represent the "big three" GPS brands in North America. Magellan's most popular GPS products are the Maestro and RoadMate, and the Triton handheld products.
Unlike previous acquisitions, this is the first time Magellan has been acquired by a direct competitor, raising serious questions about the future of the brand, the company, and it's products. It's possible that Magellan will continue to operate as it did under previous owners, though that seems unlikely given its new owner.