US company grabs balance of Navman

By PETER GRIFFIN

US marine company Brunswick Group has scooped up the remaining 30 per cent of Auckland tech darling Navman in a cash and shares deal worth $52.4 million.

That adds to the $56.1 million mainly cash deal in which Brunswick took 70 per cent of Navman last year, bringing the total value for the sale of the thriving electronics company to $108.5 million.

The initial investment was controversial because Government agency Investment New Zealand spent $20,000 wining and dining Brunswick chief executive George Buckley. He was given five-star treatment, including helicopter flight to go fly-fishing.

The latest deal is half cash and half shares in Brunswick, which lists on the New York Stock Exchange.

Navman chief executive Steven Newman and founder Peter Maire control more than seven million shares through Talon Management and are expected to be the main beneficiaries of the deal.

Newman was reluctant to acknowledge that the deal makes wealthy men of himself and others in the company's management.

"There's good reward for the years of effort that have gone into creating Navman," he said.

Newman pointed out that Brunswick's move to full ownership had come earlier than the end-of-year timeframe, which showed it was pleased with Navman's progress.

"It's a really good pat on the back for everyone here. They completely believe in what we're doing," he said.

Navman's management team would stay onboard, with Maire expected to take a broader role in Brunswick's new technology division. He was unavailable for comment yesterday.

The deal values Navman much higher than the arrangement struck last year. Since then, Newman said, Navman had grown 75 per cent, added 130 people and made deals all over the world.

The company now has 520 staff, most of them local, with 30 positions open. The Auckland headquarters was in the midst of expansion and the company had acquired the warehouse next door.

"We've punched some holes in the wall and are going from 34,000 square feet to 100,000 square feet," said Newman.

The refit would cost $4-5 million.

The question now is whether Brunswick will keep Navman based in New Zealand and run by New Zealanders. Newman said it would be stupid not to.

"When things are going well, why change it?"

Brunswick is a major international boat-seller and its ownership of Navman was tipped as being beneficial because it would open a global sales channel. Navman has since picked up good deals under its own steam but Newman said the relationship was making the pursuit of new business easier.

"We've won business with Motorola, Qualcomm and Vodafone when we were a little company at the other end of the world. But they had to do a lot more due diligence.

"Having Brunswick there goes through a number of those layers."