(Reuters) - Garmin Ltd <GRMN.O> said it signed a deal to buy Germany-based navigation provider Navigon AG for an undisclosed sum as it looks to expand in Europe.
Navigon will operate as a unit of Garmin, and should help the No. 1 U.S. navigation device maker compete against Dutch rival TomTom <TOM2.AS>.
"We can rapidly expand our automotive OEM footprint and capabilities through this transaction," Garmin's Chief Operation Officer Cliff Pemble said in a statement.
Garmin and TomTom have struggled for more than a year as Google Inc <GOOG.O> and Nokia <NOK1V.HE> started to offer free navigation on mobile devices.
Navigon, which has popular navigation applications for Apple Inc's <AAPL.O> iPhone and Google's Android platforms, will help drive revenue for the combined company, Garmin said in a statement.
Garmin shares were up 1 percent at $32.83 in afternoon trade on Tuesday on Nasdaq.
(Reporting by Saqib Iqbal Ahmed in Bangalore and Tarmo Virki in Helsinki; Editing by Don Sebastian)