Garmin Acquires LBS Provider Digital Cyclone Inc.

location based services

Garmin announced that they would be acquiring Location Based Services (LBS) provider Digital Cyclone Inc. ("DCI") for $45 million in cash. DCI has been an early mover in the emerging location based services market offering weather solutions for consumers, outdoor enthusiasts, and pilots on a subscription based model that are delivered to customers in partnership with top national wireless carriers as well as regional carriers. DCI offers weather, and fishing forecasts over mobile phone networks.

Nothing signals Garmin’s move into LBS like the launch of the Nuvi 680, and the StreetPilot C580 with MSN Direct, AND the acquisition of an LBS provider in the same day. It’s obvious that they understand the future of where the market is going (connectedness) and I look forward to seeing what else hits the market in the coming months.

"DCI has been a pioneer and a leader in the emerging location based services market," said Dr. Min Kao, chairman and CEO of Garmin Ltd. "This acquisition not only broadens our LBS product offerings but also expands our capability in the area of wireless application development, marketing, and distribution. DCI's expertise in real-time weather content delivery will one day benefit products in our aviation, outdoor, and marine markets."

"This acquisition opens up significant new opportunities for both DCI and Garmin in the LBS market," said Craig Burfeind, CEO of DCI. "We look forward to sharing expertise and technologies between Garmin and DCI in order to expand our product offerings and lead the market in innovation," said Burfeind.

DCI currently offers its My-Cast 5 application for mobile phones through major national and regional wireless carriers. My-Cast 5 offers graphical weather, customizable weather presentations, and alerts to users who want to know how weather might affect their daily lives. In addition DCI offers its Pilot My-Cast application for mobile phones which delivers weather content to aviators. Pilot My-Cast is a unique product offering that combines DCI's knowledge of aviation and their passion for delivering quality weather content. In addition, DCI provides white-label applications based on My-Cast technology to other national brands.

DCI will operate as a subsidiary of Garmin Ltd. The company will retain its management, R&D, and supporting staff and will continue to be located at its current Minnesota headquarters.