Back to top

Image: Bigstock

Trimble Acquires MidStates VRS to Expand VRS Now Coverage

Read MoreHide Full Article

Trimble (TRMB - Free Report) recently acquired MidStates VRS from Butler Machinery and Frontier Precision in a bid to bolster the footprint of VRS networks.

Notably, the newly added North and South Dakota located network offers real-time GNSS correction services to farmers and surveyors by covering oil fields, farmlands and developing urban areas.

With the latest acquisition, the company brings additional 105,000 square miles under its VRS Now network coverage, expanding its total coverage to above one million square miles in North America.

This deal is crucial for Trimble VRS Now GNSS corrections service. Moreover, it is likely to encourage the subscription of this service.

The addition of MidStates VRS will enable Trimble to offer fast, reliable and highly accurate positioning in more areas to users of its VRS Now correction service. This, in turn, will help users to boost productivity and lower their operation costs.

Benefits of the Move

The latest move is expected to be highly beneficial for Trimble.

The move bodes well for the company’s solid efforts toward expanding its correction service offerings for autonomous solutions.

We note that Trimble VRS Now, which is ideal for applications that require sub-inch level accuracy, is expected to drive the company’s momentum among autonomous applications such as Vehicle-to-Anything position identification, unmanned aerial system guidance and lane-keeping for passenger vehicles on the heels of the recent acquisition.

Furthermore, expanding coverage of VRS Now is expected to aid the company in gaining strong traction among land and construction surveyors, GIS professionals and farmers.

Wrapping Up

The latest move is expected to help the company in strengthening foothold across connected construction sites and connected farm workflows.

Moreover, it is expected drive Trimble’s momentum among professionals in agriculture, geospatial and construction fields.

All these three fields contribute significantly to Trimble’s revenues.

Hence, the MidStates VRS acquisition remains a major positive step of Trimble and is likely to drive its top-line growth in the near term.

Zacks Rank & Stocks to Consider

Currently, Trimble carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth considering in the broader computer and technology sector are Lam Research Coproration (LRCX - Free Report) , Teradyne, Inc. (TER - Free Report) and KLA Corporation (KLAC - Free Report) . While Lam Research sports a Zacks Rank #1 (Strong Buy), Teradyne and KLA carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Lam Research, Teradyne and KLA are pegged at 13.26%, 16.74% and 7.55%, respectively.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

Published in