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Aptiv (APTV) to Gain From Wind River Acquisition: Here's How
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Aptiv PLC (APTV - Free Report) recently announced that it has inked a deal to purchase Wind River from TPG Capital, the private equity platform of global alternative asset management firm, TPG, for $4.3 billion in cash. Subject to customary conditions (including receipt of applicable regulatory approvals), the deal is anticipated to be completed during mid-2022.
Wind River is a provider of intelligent edge software solutions. Its software allows the secure development, deployment, operations and servicing of mission-critical intelligent systems. This edge-to-cloud software portfolio spans the aerospace and defense, telecommunications, industrial and automotive markets. Wind River generated almost $400 million in revenues in 2021.
Over the past year, shares of Aptiv have gained 10% against the 49.8% decline of the industry it belongs. The Zacks S&P 500 composite rose 25.4% in the same time frame.
Image Source: Zacks Investment Research
How Will Aptiv Benefit?
The acquisition will see the combination of the Wind River Studio offering with Aptiv’s complementary SVA platform and automotive expertise. This will help Aptiv strengthen its position in the automotive software solutions market.
Wind River will continue to operate as a stand-alone business within Aptiv as part of its Advanced Safety & User Experience (AS&UX) segment. Wind River will continue to be led by Kevin Dallas.
Considering the changes the automotive industry is going through, the deal seems to be a strategic move on Aptiv’s part. It marks the transformation of Aptiv to the edge-enabled, software-defined future.
Kevin Clark, president and chief executive officer of Aptiv, stated, "With Aptiv and Wind River's synergistic technologies and decades of experience delivering safety-critical systems, we will accelerate this journey to a software-defined future of the automotive industry. In addition, we are committed to further strengthening Wind River's competitive position in the multiple industries it serves. We look forward to welcoming the world class Wind River team to the Aptiv family as we continue to develop a safer, greener and more connected world."
Zacks Rank and Stocks to Consider
Aptiv currently carries a Zacks Rank #5 (Strong Sell).
Avis Budget has an expected earnings growth rate of 420.6% for the current year. The company has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 744.3% in the past year. The company has a long-term earnings growth of 19.4%.
Cross Country Healthcare has an expected earnings growth rate of 447.8% for the current year. The company has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 201% in the past year. The company has a long-term earnings growth of 21.5%.
Accenture has an expected earnings growth rate of 19.7% for the current year. The company has a trailing four-quarter earnings surprise of 5.3%, on average.
Accenture’s shares have surged 43.2% in the past year. The company has a long-term earnings growth of 10%.
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Aptiv (APTV) to Gain From Wind River Acquisition: Here's How
Aptiv PLC (APTV - Free Report) recently announced that it has inked a deal to purchase Wind River from TPG Capital, the private equity platform of global alternative asset management firm, TPG, for $4.3 billion in cash. Subject to customary conditions (including receipt of applicable regulatory approvals), the deal is anticipated to be completed during mid-2022.
Wind River is a provider of intelligent edge software solutions. Its software allows the secure development, deployment, operations and servicing of mission-critical intelligent systems. This edge-to-cloud software portfolio spans the aerospace and defense, telecommunications, industrial and automotive markets. Wind River generated almost $400 million in revenues in 2021.
Over the past year, shares of Aptiv have gained 10% against the 49.8% decline of the industry it belongs. The Zacks S&P 500 composite rose 25.4% in the same time frame.
How Will Aptiv Benefit?
The acquisition will see the combination of the Wind River Studio offering with Aptiv’s complementary SVA platform and automotive expertise. This will help Aptiv strengthen its position in the automotive software solutions market.
Wind River will continue to operate as a stand-alone business within Aptiv as part of its Advanced Safety & User Experience (AS&UX) segment. Wind River will continue to be led by Kevin Dallas.
Considering the changes the automotive industry is going through, the deal seems to be a strategic move on Aptiv’s part. It marks the transformation of Aptiv to the edge-enabled, software-defined future.
Kevin Clark, president and chief executive officer of Aptiv, stated, "With Aptiv and Wind River's synergistic technologies and decades of experience delivering safety-critical systems, we will accelerate this journey to a software-defined future of the automotive industry. In addition, we are committed to further strengthening Wind River's competitive position in the multiple industries it serves. We look forward to welcoming the world class Wind River team to the Aptiv family as we continue to develop a safer, greener and more connected world."
Zacks Rank and Stocks to Consider
Aptiv currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Business Services sector are Avis Budget (CAR - Free Report) , Cross Country Healthcare (CCRN - Free Report) ) and Accenture (ACN - Free Report) ), each sporting a Zacks Rank #1.
Avis Budget has an expected earnings growth rate of 420.6% for the current year. The company has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 744.3% in the past year. The company has a long-term earnings growth of 19.4%.
Cross Country Healthcare has an expected earnings growth rate of 447.8% for the current year. The company has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 201% in the past year. The company has a long-term earnings growth of 21.5%.
Accenture has an expected earnings growth rate of 19.7% for the current year. The company has a trailing four-quarter earnings surprise of 5.3%, on average.
Accenture’s shares have surged 43.2% in the past year. The company has a long-term earnings growth of 10%.