Back to top

Analyst Blog

Trimble Navigation Ltd. (TRMB - Analyst Report), an original equipment manufacturer (OEM) of positioning, surveying and machine control products, announced its decision to acquire the assets of the privately-held Asset Forestry Limited (Asset). The financial details of the acquisition, expected to be closed by the end of Sep 2013, were kept confidential.

New Zealand-based Asset Forestry Limited was established in 1993. The company provides forestry logistics software and support services, enabling managers and contractors to better control their wood supply operations and thereby optimize returns on timber and lower the costs.

The acquisition, effective immediately, will extend Trimble’s capabilities in serving its customers in the forestry business. Upon the completion of the deal, the Asset business will become part of the Forestry Division and will be reported under Trimble's Mobile Solutions Segment.

Trimble’s field hardware and software solutions as well as enterprise solutions, forestry management and log accounting, together with Asset’s WSX logistics software and domain experience will help in increasing its customers’ efficiency and productivity. The deal will further enhance Trimble's portfolio of forestry logistics and help to provide better optimization solutions.

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 3D modeling software platform from the Internet search giant, Google Inc. . Last month, Trimble acquired the assets of the privately-held IQ Irrigation, broadening its service capabilities in the agriculture business. 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 were 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 #4 (Sell). Other stocks that are performing well at current levels include SanDisk (SNDK - Analyst Report), Micron Tech. (MU - Analyst Report) and Silicom Ltd. (SILC). All these stocks carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.