ABB Ltd (ABB - Analyst Report) is planning to acquire Dynamotive Ltd., a move aimed to expand its service offering in low- and medium-voltage drives and motors. The financial terms of the deal were not mentioned, but it is expected to close this month.
In addition, the acquisition is expected to help ABB increase its complete industrial motion packages sales, including drives, motors, controls and related services.
The acquisition complements the existing business of ABB and will be included in the Drives and Controls segment, operated from the U.K. By combining the two businesses, ABB will enhance its manufacturing capabilities as well as product knowledge; thereby improving its ability to serve its customers. Post-acquisition, the two companies are expected to create value-driven growth based on innovation.
Based in Coalville, UK, Dynamotive primarily designs, commissions and upgrades systems of drives, controls and motors for industrial and marine applications and automotive test rigs.
Based in Zurich, Switzerland, ABB is one of the world’s largest manufacturers of electric motors and drives. Recently, the company completed acquisitions in two core areas of its business. ABB announced its intention to acquire Power-One, Inc. , a leading provider of renewable energy and energy-efficient power conversion and power management solutions.
After that, it acquired Mountain View, California-based Los Gatos Research. Through this acquisition, ABB will be adding to its portfolio of high performance gas analyzers, providing real-time measurement of trace gases and isotopes for research and environmental monitoring.
ABB currently has a Zacks Rank #3 (Buy). Some other players in the same industry that can be considered for buying at the moment are Quanta Services Inc. and Orion Marine Group Inc. (ORN - Snapshot Report), both carrying a Zacks Rank #2 (Buy).