) announced that it has acquired French software company Newron
System S.A. for an undisclosed sum. The deal is a strategic move
by ABB to expand and strengthen its automation solutions for
buildings. ABB will include Newron System in its Low Voltage
ABB is banking upon Newron System's state-of-the-art
building-automation software solutions, which will have a global
reach through ABB's broad sales network. Further, the company
expects that the acquisition will broaden its offering to the
channel partners and system-integrator partners for automation
solutions in buildings.
Newron System primarily develops software for
building-automation solutions and sells them through high-end
distributors and installers. The company's revenues are close to
$10 million and its software help devices, such as blind controls
and lights, to communicate with each other.
Of late, ABB is pursuing strategic acquisitions to strengthen
its businesses in order to serve its customers better, while
building and expanding its geographical reach. Prior to this, ABB
acquired Power One, a leading provider of renewable energy and
energy-efficient power conversion and power management solutions.
Through this acquisition, ABB is expected to become a leading
supplier of solar inverters globally.
ABB's Low Voltage Products division primarily includes
products and systems that provide protection, control and
measurement for electrical installations, enclosures,
switchboards, electronics and electromechanical devices for
industrial machines, plants and related services. The offering
also includes intelligent building control systems, also known as
KNX systems, for home and building automation to improve comfort,
energy efficiency and security.
ABB currently has a Zacks Rank #4 (Sell), which might not be a
good option at the moment. However, other companies in the same
industry such as Plug Power Inc. (
), Rexnord Corp. (
) and AO Smith Corp. (
) are worth considering now. All three carry a Zacks Rank #2
ABB LTD-ADR (ABB): Free Stock Analysis Report
SMITH (AO) CORP (AOS): Free Stock Analysis
PLUG POWER INC (PLUG): Free Stock Analysis
REXNORD CORP (RXN): Free Stock Analysis
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