Trimble Navigation Ltd. ( TRMB ), original equipment manufacturer (OEM) of positioning, surveying and machine control products, has completed its acquisition of ALK Technologies Inc. for an undisclosed sum.
New Jersey-based ALK Technologies is a privately-held company that started its journey in 1979. For the past three decades, it has been offering innovative and high-quality routing, mileage and mapping solutions to the transportation, logistics and mobile industries. ALK Technologies enjoys a commanding presence as its solutions are used in 64.0% of for-hire motor carriers in the U.S.
Upon the completion of the deal, ALK Technologies's map-based solutions will be added to Trimble's transportation and logistics product portfolio and will come under Trimble's Mobile Solutions (TMS) segment.
The acquisition will enable Trimble to provide better mapping and GPS solutions to professional drivers of the logistics, manufacturing, government and transportation sectors.
Trimble has an aggressive merger and acquisition strategy. In 2012 itself, Trimble completed half a dozen acquisitions with varying business models. Earlier this year, Trimble acquired a 3-D modeling software platform from Internet search giant Google Inc. ( GOOG ). The company's acquisitions have helped it to build a desired portfolio, enhance its product line and boost its top line.
In the third quarter of fiscal 2012, Trimble earned revenues of $504.8 million. Revenues were down 2.5% sequentially, but jumped 20.9% year over year. The year-on-year revenue growth was supported by a 44.3% jump in Service revenue, further supported by 35.2% and 16.1% year-over-year gains in Subscription and Product revenue, respectively.
Both Trimble and Google have a Zacks #3 Rank (Hold).