Zacks Investment Research | Apr 10, 2017 09:53PM ET
Trimble Navigation Ltd. (NASDAQ: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.
Bottom Line
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.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.