Tyler Technologies ( TYL Quick Quote TYL - Free Report) recently announced the acquisition of Quatred, a Center Barnstead, NH-based tech company. The company didn’t disclose the financial terms of the transaction. Per the agreement, the current employees of Quatred will join as full-time staff at Tyler.
Founded in 2005 by Marc Doyon, Quatred is a systems integrator and solution provider assisting clients in implementing advanced touchless technologies, including bar coding and Radio-Frequency Identification.
Tyler and Quatred have been partners since 2018, when the former had integrated the latter’s QUICK (Quatred Universal Interface Control Kit) solution, which is a wireless, service-oriented architecture foundation providing rapid deployment. The solution interacts with TYL’s enterprise resource planning (“ERP”) solution in real-time, which helps clients track assets and inventory transaction.
Therefore, the acquisition is expected to further fortify Tyler’s ERP solution capabilities. The company intends to integrate Quatred’s bar coding technology into its additional solutions and strengthen its current ERP and enterprise asset maintenance offerings.
The company revealed that Quatred is currently serving more than 150 public sector clients in the United States and many of them are already using Tyler’s ERP solution for asset and inventory management. Therefore, the acquisition will help Tyler cross-sell and drive growth opportunities in public safety and public administration.
Acquisitions Driving Growth
In recent years, Tyler’s growth trajectory has been driven by acquisitions. The company has been pursuing strategic takeovers to broaden its product and service offerings, enter new markets related to local governments, attract clients and expand geographically.
In February 2022, the company acquired US eDirect, a provider of technology solutions for campground and outdoor recreation management. In September 2021, TYL acquired Arx to integrate Arx under its Public Safety Division. In the same month, it completed the acquisition of VendEngine for $84 million in cash. VendEngine focuses on providing cloud-based software for correctional facilities. The company offers financial management applications and communication platforms that are used by inmates of jails and prisons.
In April 2021, Tyler completed the acquisition of NIC, which helped the company foray into digital government solutions and payments. The company also purchased a cloud-based school scheduling platform, ReadySub, in April 2021. The ReadySub acquisition has helped the company bring more comprehensive schooling solutions to its school district clients by assisting them in implementing all-in-one workflows.
Tyler is likely to pursue more acquisitions that will strategically align with its current offerings. Along with investments in R&D, acquisitions are likely to strengthen the firm’s product offerings and clientele over the long run.
Zacks Rank & Other Stocks to Consider
Currently, Tyler carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader technology sector are
ON Semiconductor ( ON Quick Quote ON - Free Report) , Analog Devices ( ADI Quick Quote ADI - Free Report) and MaxLinear ( MXL Quick Quote MXL - Free Report) . While ON and Analog Devices each currently sport a Zacks Rank #1 (Strong Buy), MaxLinear carries a Zacks Rank #2. You can see . the complete list of today's Zacks #1 Rank stocks here
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