The deal provides Movix with access to Intrinsyc's core navigation assets in source code form and enables the Brazilian company to sublicense the software to other navigation and location-based service providers throughout Latin America. Intrinsyc and Movix will work together to customize solutions for Spanish and Portuguese speaking markets. This new agreement follows a long relationship that started in 2002.
"This agreement allows Movix to bring increased innovation and localized navigation features for Spanish and Portuguese speaking markets from Mexico to Argentina," said Carlos Roberto Borges, Managing Director at Movix.
For several years Intrinsyc’s Navigator enjoyed a good market share in Latin America, until it lost its Mexican business when DestinoGPS moved to a full Mio solution - including hardware and software - last year. In Brazil the market has been also shaken by NDrive which gained a lot of share in the PND business in selling directly to an important retailer.
Intrinsyc navigation software market share has been also put under pressure in the rest of the world:
”[…] The intensely competitive navigation software market, including several free offerings in the North America market, resulted in declining revenue from our Destinator product line […]” said Tracy Rees, President and CEO to investors on November 10, 2010.
It is likely that the declining revenue from its navigation business pushed Intrinsyc to outsource its sales to a long term partner in this region. Moving forward one might wonder if Intrinsyc navigation offering has the development speed and the sales force needed to succeed in the marketplace today. It seems NNG and NDrive have been eating much of Intrinsyc/Destinator plate in 2010.
When Intrinsyc bought Destinator they had great expectations to bring together their historical business (software development for third party devices) with the Destinator navigation stack to build connected PNDs. However, connected PNDs have been slow to get traction and in between the navigation market has seen a fast consolidation movement in the hands of TomTom and Garmin. As a results there is no customer left for connected PNDs. Nowadays Intrinsyc is developing e-readers (the most well known is Barnes and Noble’s Nook) and other types of tablets where navigation is far to be a central feature.