Garmin, TomTom Call Truce, for a Moment

The two companies didn't disclose details of the agreement.

Garmin, based in the Cayman Islands but with operational headquarters in Olathe, Kan., makes products that use global positioning system data and is the market leader in the U.S. and overall.

TomTom, based in Amsterdam, is the European leader in similar devices.

TomTom sparked a rush to consolidate the high-growth digital mapping industry when it said it would buy digital map provider Tele Atlas for $30.63 per share in July.

Tele Atlas had endorsed the TomTom bid but said Wednesday it was reviewing its options in light of a bid from Garmin, which topped TomTom by 15 percent.

Garmin filed the lawsuits in federal courts in Wisconsin and Texas, claiming patent infringement by TomTom, and asked courts in the Netherlands and the United Kingdom to invalidate registered designs and patents claimed by TomTom. TomTom countersued in Wisconsin, claiming Garmin infringed on three patents TomTom bought from Horizon Navigation Inc.

A year ago, Garmin won the first round when a court in The Hague, Netherlands, refused TomTom's request for a preliminary injunction against Garmin for allegedly copying a European registered design it owned.

While the two sides have settled the litigation, they are still locked in a battle for Tele Atlas, also based in the Netherlands.

Shares of Garmin rose earlier this week on speculation that the navigation device maker may offer more than $60 per share but some analysts have speculated it could be difficult for Garmin to gain control because TomTom has amassed more than a quarter of Tele Atlas' shares.