) recently announced that it has acquired assets of
privately-held Vico Software, Inc. based in Colorado. The
financial terms of the deal were not disclosed.
Vico offers consulting services and is a developer of 5D
virtual construction software. Its software helps in
synchronizing end-to-end business processes enabling all
architecture, engineering and construction service providers to
see the progress of construction activities and the related costs
over time. Additionally, the software allows professionals to see
how a design change affects project cost and schedule. It helps
to save time and cost, thus improving productivity and
Upon the completion of the deal, the Vico Software business
will be reported within Trimble's Engineering and Construction
(E&C) segment. The acquisition will enable Trimble to provide
improved solutions for building construction and better deal with
the increasing complexities of the evolving building information
management (BIM) segment.
While Trimble has been providing effective solutions for the
typical E&C markets, such as survey, heavy and highway and so
forth, management has been looking for opportunities in adjacent
areas that could stimulate growth. The Vico acquisition is
expected to help this process. An added benefit would be the
growing software content, which is a positive for
Trimble is quite active on the mergers and acquisitions
(M&A) front. The company's acquisitions have helped it to
build a desired portfolio, enhance its product line and increase
top-line growth. Acquisitions have also been positive for gross
margins, while adding operating leverage.
Trimble Navigation, Ltd. is an original equipment manufacturer
(OEM) of positioning, surveying and machine control products. In
the last-reported third quarter of 2012, E&C segment revenue
of $287.2 million was up 1.1% sequentially and 19.0% from the
comparable quarter of 2011.
Trimble has been putting in a lot of effort, disposing off
non-focus areas and building a desired portfolio through
successive acquisitions. The Vico acquisition is expected to
further streamline construction processes, improve cost
management, and hence drive revenue in this segment.
Trimble's solid portfolio (enhanced by acquisitions), strong
market position and strategic partnerships are expected to drive
both revenue and earnings over the next few quarters.
However, Trimble faces stiff competition, particularly from
TOPCON Corporation and
Currently the shares of Trimble retain a Zacks #3 Rank
(short-term Hold rating).
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