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Carrier (CARR) Acquires Nlyte Software, Boosts HVAC Segment

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Carrier Global Corporation’s (CARR - Free Report) Carrier has completed the acquisition of Nlyte Software, a leading company in data center infrastructure management software.

Nlyte Software offers centralized management of all data center resources. With the help of this, organizations can plan, view, and accordingly optimize their data centers for transparency as well as maximum energy efficiency.

Nlyte’s management solution has helped it achieve a customer retention rate of 98%. Hence, the underlined buyout is likely to expand Carrier’s customer reach.

Further, the acquisition of Nlyte has added strength to Carrier’s portfolio of data center offerings within the Heating, Ventilation and Air Conditioning (HVAC) business.

Nlyte will join Automated Logic Corporation, Carrier’s building automation and controls business that is part of the HVAC business.

With solutions of both Nlyte and Automated Logic, Carrier intends to offer data center customers a holistic intelligent solution for enhanced operational efficiencies.

Further, the company remains optimistic that it will generate higher profits in the upcoming period.

Strength in HVAC Segment

With the acquisition of Nlyte, Carrier has bolstered its subsidiary Automated Logic.

The segment has been benefiting from the company’s other subsidiaries of the same segment including Carrier, Arcoaire, Bryant, CIAT, Tempstar, EcoEnergy Insights.

Recently, Carrier introduced a series of TruVu Dual IP Advanced Application Controllers for the i-Vu building automation system, which enhances system control and monitoring capabilities. Additionally, it launched a BluEdge Digital service offering that provides the existing BluEdge customers with advanced analytics for optimizing machine health. These remain positives for segmental growth.

In addition, Automated Logic released a newly designed website to provide an enhanced and engaging experience to customers visiting the website.

Further, CIAT unveiled the latest range of rooftop air conditioning packaged units, namely VectiosPower, to provide the maximum level of indoor air quality and complete efficiency. This remains a tailwind for the segment.

Thus, this segment has become an integral part of the company, which generated $3.12 billion in revenues, accounting for 57.3% of total second-quarter net sales and increasing 36.2% on a year-over-year basis.

Growing Acquisitions

The recent move bodes well for Carrier’s growing efforts toward strengthening its portfolio of offerings. The company’s increasing strategic acquisitions have been acting as key catalysts in shaping up its growth trajectory.

Apart from the recent buyout, the company also completed the acquisition of BrokerBay, a leading developer of premium and user-friendly real estate management cloud solutions. The buyout has added strength to Carrier’s portfolio of solutions within the Fire & Security business.

In addition, the company acquired Guangdong Giwee Group and its subsidiaries, Guangdong Chigo Heating & Ventilation Equipment. The buyout added Guangdong’s portfolio of high-quality products to Carrier's portfolio of offerings. Further, it helped the company in penetrating the booming variable refrigerant flow and light commercial market.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the broader technology sector include Nikon (NINOY - Free Report) , Semtech Corporation (SMTC - Free Report) and Avnet (AVT - Free Report) , each currently flaunting a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rates for Nikon, Avnet, and Semtech are currently projected at 51.6%, 25.4%, and 12.5%, respectively.

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