Jacobs Engineering Group Inc. (JEC - Free Report) recently acquired a privately held telecommunications solutions provider, Compass Technology Services, Inc. The financial terms of the deal were not disclosed.
Compass Technology provides network development and complete life cycle solutions for various telecommunication companies, and has been in the business for over a hundred years. Compass is experienced in providing services such as financial rationalization of network benefit, desktop design planning, equipment selection and Fiber splicing.
This strategic move of purchasing Compass will enhance Jacobs' efficiency in the telecommunications infrastructure design and construction. Not only will Jacobs’ product offerings increase, but also the company will become geographically diverse, since Compass has a significant presence in the Southeastern U.S.
Jacobs is flourishing with a lot of contracts under its name. The company functions under a relationship-based model with around 94% of the business achieved through repeat customers in the fiscal second quarter 2013. With the acquisition of Compass, it is expected that the contract count for the company will increase further.
California-based Jacobs is one of the leading providers of professional, technical and construction services to industrial, commercial and governmental clients. The company provides its services through more than 200 offices and subsidiaries located principally in North America, Europe, Asia, and Australia. Jacobs has its headquarters in Pasadena, California, U.S., and the work force consists of approximately 63,400 employees.
Jacobs currently bears a Zacks Rank #3 (Hold). Other stocks to watch out for in the engineering industry are Michael Baker Corporation , carrying a Zacks Rank #1 (Strong Buy); while, Harris & Harris Group, Inc. and Quanta Services, Inc. (PWR - Free Report) carry a Zacks Rank #2 (Buy), each.