Magellan Systems, Ashtech to Merge

Magellan Systems Corp. of San Dimas will merge with Sunnyvale-based Ashtech Inc. to form a satellite navigation products company with annual revenue of more than $125 million. The combined company, which would be called Magellan Corp., would be based in Sunnyvale. Both companies make Global Positioning System and other satellite navigation devices. Magellan Systems’ 250 employees in San Dimas would not have to relocate to the Silicon Valley, said company spokesman Don Meyer. Orbital Sciences Corp., the Dulles, Va.-based parent of Magellan Systems, would pay $25 million in cash to privately held Ashtech stockholders and would own two-thirds of the combined company. The merger is expected to close this month after a federal antitrust review. Orbital shares fell 63 cents to close at $24.88 on Nasdaq.