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KBR to Acquire Digital Transformation Specialist VIMA Group
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KBR, Inc. (KBR - Free Report) has agreed to acquire a UK-based digital transformation company — VIMA Group — for up to £75 million. This addition would strengthen KBR’s offerings in digital and information technology services for defense sector clients.
Stuart Bradie, CEO and president of KBR, said, "This acquisition builds on our growing platform of high end, technically differentiated advisory, consulting, and transformation solutions in international markets."
Buyout Synergies
VIMA Group offers solutions across a number of large-scale, high-priority digital transformation programs to support its clients, including defense and other public sector firms. It ensures the availability of effective digital and information technology as guided by UK's Digital Strategy for Defence.
VIMA is a trusted advisor and one of the top-five suppliers to Defence Digital and Navy Digital – both organizations within the UK Ministry of Defence with a number of highly strategic, fast-growing programs.
Meanwhile, KBR’s outlook for government business looks solid as the administration’s spending priorities remain focused on defense modernization, including military, intel, commercial, cyber, digital and intelligence space, with an emphasis on emerging technologies. This acquisition will help KBR bolster its inorganic growth and expand its market share.
In sync with this inorganic strategy, KBR acquired a leading provider of high-end systems engineering, assurance and technology advisory services — Frazer-Nash — in October 2021. The addition of Frazer-Nash, which serves across the defense, renewable energy and critical infrastructure sectors primarily in the U.K. and Australia, will complement KBR's global priorities with minimal overlap because of its geographic footprint.
Image Source: Zacks Investment Research
Coming to the share price performance, KBR’s shares have gained 18.7% over the past year against the Zacks Engineering - R and D Services industry’s 5.8% fall. KBR’s solid prospects are backed by continuous contract wins, strong project execution, backlog level and potential government and technology businesses.
Some better-ranked stocks in the Construction sector include Simpson Manufacturing Co., Inc. (SSD - Free Report) , Beazer Homes USA (BZH - Free Report) and AECOM (ACM - Free Report) .
Simpson Manufacturing — currently carrying a Zacks Rank #1 — designs, engineers, manufactures and sells wood and concrete construction products.
SSD’s expected earnings growth rate for 2022 is 18.1%. The Zacks Consensus Estimate for current-year earnings has improved 11.6% over the past 60 days.
Beazer Homes — also sporting a Zacks Rank #1 — designs, builds and sells single-family homes. BZH designs homes that appeal primarily to entry-level and first move-up homebuyers. Beazer Homes USA’s objective is to provide customers with homes that have quality and value. BZH’s subsidiary, Beazer Mortgage, originates the mortgages for the company's homebuyers.
Beazer Homes’ expected earnings growth rate for fiscal 2022 is 48.9%. The Zacks Consensus Estimate for current-year earnings has improved 14.6% over the past 60 days.
AECOM — currently carrying a Zacks Rank #2 (Buy) — is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and those in environmental, energy and water businesses.
AECOM’s expected earnings growth rate for 2022 is 21.6%.
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KBR to Acquire Digital Transformation Specialist VIMA Group
KBR, Inc. (KBR - Free Report) has agreed to acquire a UK-based digital transformation company — VIMA Group — for up to £75 million. This addition would strengthen KBR’s offerings in digital and information technology services for defense sector clients.
Stuart Bradie, CEO and president of KBR, said, "This acquisition builds on our growing platform of high end, technically differentiated advisory, consulting, and transformation solutions in international markets."
Buyout Synergies
VIMA Group offers solutions across a number of large-scale, high-priority digital transformation programs to support its clients, including defense and other public sector firms. It ensures the availability of effective digital and information technology as guided by UK's Digital Strategy for Defence.
VIMA is a trusted advisor and one of the top-five suppliers to Defence Digital and Navy Digital – both organizations within the UK Ministry of Defence with a number of highly strategic, fast-growing programs.
Meanwhile, KBR’s outlook for government business looks solid as the administration’s spending priorities remain focused on defense modernization, including military, intel, commercial, cyber, digital and intelligence space, with an emphasis on emerging technologies. This acquisition will help KBR bolster its inorganic growth and expand its market share.
In sync with this inorganic strategy, KBR acquired a leading provider of high-end systems engineering, assurance and technology advisory services — Frazer-Nash — in October 2021. The addition of Frazer-Nash, which serves across the defense, renewable energy and critical infrastructure sectors primarily in the U.K. and Australia, will complement KBR's global priorities with minimal overlap because of its geographic footprint.
Image Source: Zacks Investment Research
Coming to the share price performance, KBR’s shares have gained 18.7% over the past year against the Zacks Engineering - R and D Services industry’s 5.8% fall. KBR’s solid prospects are backed by continuous contract wins, strong project execution, backlog level and potential government and technology businesses.
Zacks Rank
KBR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Construction Stocks to Buy Now
Some better-ranked stocks in the Construction sector include Simpson Manufacturing Co., Inc. (SSD - Free Report) , Beazer Homes USA (BZH - Free Report) and AECOM (ACM - Free Report) .
Simpson Manufacturing — currently carrying a Zacks Rank #1 — designs, engineers, manufactures and sells wood and concrete construction products.
SSD’s expected earnings growth rate for 2022 is 18.1%. The Zacks Consensus Estimate for current-year earnings has improved 11.6% over the past 60 days.
Beazer Homes — also sporting a Zacks Rank #1 — designs, builds and sells single-family homes. BZH designs homes that appeal primarily to entry-level and first move-up homebuyers. Beazer Homes USA’s objective is to provide customers with homes that have quality and value. BZH’s subsidiary, Beazer Mortgage, originates the mortgages for the company's homebuyers.
Beazer Homes’ expected earnings growth rate for fiscal 2022 is 48.9%. The Zacks Consensus Estimate for current-year earnings has improved 14.6% over the past 60 days.
AECOM — currently carrying a Zacks Rank #2 (Buy) — is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and those in environmental, energy and water businesses.
AECOM’s expected earnings growth rate for 2022 is 21.6%.