Trimble Navigation Ltd.TRMB , an original equipment manufacturer of positioning, surveying and machine control products, recently acquired Canadian-based BOS Forestry. The financial details of the deal have been kept under wraps.
The company's share price increased 22.61% in the last two years compared with the Zacks Electronics - Miscellaneous Products industry's gain of 12.85%. This was largely backed by the company's aggressive merger and acquisition strategy.
BOS Forestry Acquisition Complements Trimble's portfolio
Acquisitions have helped Trimble to build a comprehensive portfolio, enter new markets and generate additional revenues.
The acquisition of BOS Forestry complements Trimble's Connected Forest solutions that provide full raw materials lifecycle management solutions and is expected to boost the company's forestry division.
The acquisition, effective immediately, will extend Trimble's capabilities in serving its customers in the forestry business. The deal will focus on advanced technologies for better forest management, traceability and processing of timber.
BOS Forestry is a leading provider of forestry software. The company's suite of applications will provide processes for scale site, log load, yard inventory, contractor settlement, finished goods sales and distribution.
The acquisitions appear to be a part of Trimble's bid to expand its international business, sustaining its focus on commercial applications that, while being more macro-sensitive, allow a more stable revenue stream and better profits.
Trimble has added a large number of companies over the past few years. In 2014, 2015 and 2016, it acquired 10, five and three companies, respectively, as well as important assets of several others to complement its current business and capabilities.
These acquisitions are small in comparison to Trimble, so there have been no integration issues. Rather, the acquisitions facilitated market expansion and revenue buildup. The company also forms joint ventures to build positions in strategic areas. We expect acquisitions to remain an important growth driver going ahead.
Trimble Navigation Ltd. Price and Consensus
Other Stocks to Consider
Currently, Trimble has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are ON Semiconductor Corporation ON , Analog Devices ADI and Microchip Technology Incorporated MCHP . Each of these stocks sporta a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
For the current year, estimates for ON Semiconductor were up 7.8% in the last 60 days. Estimates for Analog Devices and Advanced Energy increased 20.4% and 19.3%, respectively.
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