Trimble Navigation Ltd.
), an original equipment manufacturer (OEM) of positioning,
surveying and machine control products, recently acquired the
assets of the privately-held IQ Irrigation based in Christchurch,
New Zealand. The financial details of the acquisition, expected
to be closed by the end of Aug 2013, were kept confidential.
IQ Irrigation, jointly owned by Neil Douglas, Ian Jenson and
Mark Whalley, provides hardware and software solutions to manage
irrigation systems, enabling farmers to best optimize the water
The acquisition, effective immediately, will extend Trimble's
capabilities in serving farmers in the agriculture business. IQ
Irrigation's hydrology expertise and strong rainfall technology,
along with Trimble's new Connected Farm online dashboard will
help farmers to better monitor the status of their pivot or
linear irrigators. This will enable farmers to save time and
increase efficiency, convenience and productivity of their
Trimble's Connected Farm is an electronic dashboard on the
computer that help farmers to manage operations by viewing key
information such as weather forecasting, rainfall totals,
commodity prices, field operation maps and fleet locations.
Farmers will be able to gather real time information on the
status of the irrigator and a visual simulation of the current
water consumption and irrigation patterns
Upon the completion of the deal, irrigation pivot data will
likely be available on the Connected Farm dashboard in New
Zealand and the United States in the fourth quarter of 2013 and
first half of 2014, respectively.
Trimble has an aggressive merger and acquisition strategy. In
2012, Trimble completed half a dozen acquisitions serving various
business models. Earlier this year, Trimble acquired a 3-D
modeling software platform from the Internet search giant
). Recently, Trimble acquired the New Zealand-based Actronic
Holdings Limited, a weighing solution company. The company's
acquisitions have helped it to enhance its product line and boost
its top-line growth.
In the second quarter of fiscal 2013, Trimble earned revenues
of $576.3 million. Revenues were up 3.6% sequentially and 11.3%
year over year and within the guided range of $575 million-$580
million in the quarter. Improvement in the U.S. commercial and
residential construction markets helped Trimble's business in the
last quarter. Trimble's acquisitions are also helping it to build
a strong product portfolio and position itself in markets with
better growth prospects.
Currently, Trimble has a Zacks Rank #3 (Hold). Other stocks
that are performing well at current levels include
), all carrying a Zacks Rank #1 (Strong Buy).
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