Garmin’s Acquisition Of ‘Tacx’, The Maker Of Indoor Bike Trainers Very Puzzling & Kind Of Stupid.
Why, or Why?
Garmin is NOT in the indoor bike business and claiming that it is going to branch out into that sector is stupid.
Garmin has to stay with its core strengths: GPS and wearables!
This is stupid and I here talk as a longtime Garmin investor. So, I do have a right to be concerned. I have money in Garmin.
I was involved in a number of $100+ MILLION acquisitions in the late 1990s with Cisco — the then market leader in networking. We always worked on the adaje “don’t even think about buying a cow if you can get all the milk you need at a reasonable price”. Shame that nobody at Garmin knew of this basic rule of Mergers & Acquisitions (M&A). It is actually called the “Cow Rule”.
Garmin should be investing in health technology for its watches — blood pressure monitoring, diabetes etc.
Instead, it buys an unknown Dutch maker of indoor bike trainers. Blinking amazing. Typical Garmin.