Incorporated in 1986 as a venture capital startup with the mission of bringing to market a small, hand-held, portable and affordable GPS navigation device, the company began operations in 1987 with five employees. Today the company employs more than 300 people. Headquartered in San Dimas, CA, USA, Magellan opened an assembly facility in Mexicali, Mexico, in 1995.

The company's first product, the NAV 1000, was also the world's first commercial, hand-held GPS receiver. The product line offering has expanded from a single GPS receiver to over thirty GPS products and systems while annual sales have grown from zero to nearly $100 million since 1989.

In 1994, Magellan merged with Orbital Sciences Corporation (OSC; NASDAQ: ORBI), a diversified commercial space products company with interests in low-cost launch vehicles, small satellites, space sensors, avionics, satellite tracking systems, Earth observation systems and related services and products. Today, Magellan Systems operates as an independent subsidiary within OSC's Communications and Information Systems Group.