The interest in Raymarine, whose annual meeting is being held on Friday this week, comes at a time of intense consolidation in the burgeoning market for satellite and mobile navigational technology. In recent months the biggest players in the sector have been scouring smaller companies in a bid to snap up new technology and increase their market share.

Garmin is known to be looking out for acquisitions. Last year, it narrowly missed out on a bid for map maker Tele Atlas. Tom Tom, the Dutch manufacturer of satellite navigation aids, clinched the deal.

Raymarine claims to be the world leader in marine electronics. With a market value of £200m, the company has offices in the UK, Europe, America and Australia, and listed on the London Stock Exchange in December 2004. In February, the company reported a 66% jump in pre-tax profits to £23.4m, emphasising it was confident about its outlook and noting 'builders of mid to large boats are reporting healthy orders'.

 Goldman Sachs reiterated a 'buy' recommendation while Citigroup kept a 'buy', adding: 'For the patient investor, we believe Raymarine will deliver excellent medium-term returns.' SVG Investment Managers recently said Raymarine is 'a highly coveted asset in a long-term growth market and should appeal to private equity and trade buyers alike'.