) announced its plan to acquire APS Technology Group (APS), based
in San Diego. With this acquisition the company adds optical
character recognition (OCR) and gate automation techniques to its
portfolio which will enable it to benefit from the rising demand
for containerized shipping globally.
Safety, productivity and efficiency of port operations are
enhanced with these new techniques. Terms of the transaction are
After the completion of the acquisition APS will be included
in ABB's Crane and Harbor automation business. Total employee
strength of APS is 50 in two of its California offices, in San
Diego and in Long Beach. ABB does not plan to make any major
change to APS' organizational structure.
Due to the growing demand for containerized shipping, manual
handling of containers in ports and terminals is now moving
towards fully automated systems. Therefore, with the
implementation of the OCR technology to containers, trucks and
gates ABB will be able to better handle the automated process of
ship to gate process. This process will increase productivity and
reduce the number of accidents ultimately saving time and money
ABB Ltd. leads the market in crane automation techniques,
providing a variety of automation and electric grid products and
services to marine industries. ABB's shore-to-ship electric power
for idling ships' engines at ports to lower cost and emissions.
The acquisition of APS is a strategic move by ABB, as it expects
the global terminal automation market to double in the next five
ABB also is one of the leading player in the Power and Power
Systems supply products. The company on a continuous basis
receives contracts from the leading power projects globally,
which is also the major revenue driver for the company.
Over the past three years, ABB has made an investment of
nearly $11 billion in North America, in order to become a leading
player in the power and automation technologies segment. In
addition, now with the combination of Thomas & Betts' network
of more than 6,000 distributor locations and wholesalers, ABB's
market reach in North America alone is expected to reach to about
$24 billion. This is in line with the company's long-term (2015)
growth and profitability targets.
In other regions, such as Europe and Asia, ABB intends to
capture the market through its already well established
ABB Ltd. currently has a Zacks #4 Rank (Sell). Its close
rivals such as
Tyco International Inc.
) has a Zacks Rank #1 (Strong Buy) and
) has a Zacks Rank #2 (Buy).
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