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Acuity Brands (AYI) Acquires Rockpile Ventures, Aids ISG Arm

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Acuity Brands, Inc. (AYI - Free Report) announced the acquisition of a Seattle-based accelerator of early-stage artificial intelligence (AI) companies — Rockpile Ventures. With this acquisition, Acuity Brands welcomed co-founders of Rockpile Ventures, Peter Han and Dinesh Narayanan, as the president and vice president of business development of ISG.

Peter Han, president of Intelligent Spaces Group or ISG, Acuity Brands said, “We see great opportunities at Acuity to combine our existing footprint of sensors and back-office infrastructure with new AI models in the cloud. We are building systems to sense, think, and act at scale and to use Acuity’s reach and capability to deploy those systems to make spaces smarter, safer, and greener.”

Notably, Rockpile’s portfolio technologies have been deployed at leading energy, manufacturing and retail verticals enterprises.

Accretive Acquisitions Bode Well

Acuity Brands is highly focused on expanding geographic borders and the product portfolio through acquisitions and joint ventures. On Nov 25, 2019, the company acquired LocusLabs, Inc. — a leading indoor mapping and location platform whose software supports navigation applications used in mobile devices, web browsers or digital displays in airports, event centers, multi-floor buildings and campuses.

Earlier in September 2019, the company acquired Canada-based The Luminaires Group — a leading provider of specification-grade lightening solutions. Again in June, it acquired a New Castle, DE-based manufacturer of advanced optical components, WhiteOptics, L.L.C.

In response to the rapidly changing market trends, Acuity Brands is consistently expanding the portfolio of innovative lighting control solutions and energy-efficient luminaries along with geographical presence and market reach. Although general economic slowdown as a result of COVID-19 is a concern for the company, it remains confident about the lighting and related industry going forward. Also, it expects the construction of automation systems to experience solid growth in the next decade.

Shares of this Zacks Rank #2 (Buy) company have gained 46.4% so far this year compared with the industry’s 39.2% growth. The diversified portfolio and bolt-on acquisitions of Acuity Brands — which shares space with Orion Energy Systems, Inc. (OESX - Free Report) , Energy Focus, Inc. (EFOI - Free Report) and LSI Industries Inc. (LYTS - Free Report) in the same industry — will benefit the company in the future despite industry woes. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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