) has completed its previously announced acquisition of Tropos
Networks Inc., a Silicon Valley-based company engaged in
development and distribution of wireless technologies and products
for distribution area communication networks. The acquisition
strengthens ABB's distribution automation business while expanding
its scope in sectors like transportation, oil and gas, and
Through this acquisition, ABB will enhance its skills in
communication technologies while gaining expertise to develop new
technologies. Further, ABB's portfolio of fixed-wire and radio
communication solutions will be enhanced through the addition of
Tropos' dependable, safe and scalable solutions for wireless
Tropos' technology and products for wireless IP (Internet
Protocol) broadband networks are efficient for grids and important
outdoor industrial applications. ABB will retain 55 employees of
Tropos after the acquisition. Tropos main business is in North
America and has its customers in more than 50 countries worldwide.
Tropos acquisition is strategically sound for ABB as it allows it
to attain its goal to develop the distribution automation business
and expand its presence in North American market.
ABB provides complete solution for effective networks and
smarter grid. These offerings are enhanced with the addition of
Moving ahead, the emerging markets will be a significant growth
driver for ABB. Demand in mature markets is also expected to
improve. Customer capital expenditures have increased with the rise
in commodity prices. Increased capacity in some later-cycle
infrastructure-related businesses continue to exist. In many
sectors, price stability has been attained and ABB has increased
its prices to offset increasing raw material costs.
However, ABB Ltd's results are likely to be adversely impacted
by macroeconomic weakness as more than 80% of the company's orders
are derived from outside the US. A major competitor of ABB Ltd. is
ABB Ltd. is a Zurich (Switzerland) based power and
automation technology company. The company operates in
approximately 100 countries, structuring its global organization
into five regions: Europe, Americas, Asia, the Middle East and
Currently, we maintain a Zacks #3 Rank (short-term Hold
recommendation) on ABB Ltd.
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