Generac ( GNRC Quick Quote GNRC - Free Report) recently acquired an industrial internet of things (IoT) software platform — Blue Pillar for an undisclosed amount. The acquisition will aid Generac to provide monitoring and control capability as a “built-in feature” through the integration of the Blue Pillar platform with its suite of power-generation products as well as Generac Grid Services’ projects.
Blue Pillar specializes in providing Industrial IoT network software solutions in a simple format to aid in efficient and seamless monitoring and control of distributed energy generation. Generac noted that monitoring and control capabilities are imperative for customers and utility partners. These capabilities aid in lowering dependence on the power grid and help in managing energy consumption and related costs and boost the overall performance of equipment.
The companies share a mutual client base and compatible product portfolio. With Blue Pillar buyout, the company will be able to provide a comprehensive connectivity solution to commercial and industrial customers, noted Generac.
Generac is a leading manufacturer of power generation equipment, energy storage systems and other power products including portable, residential, commercial and industrial generators. The company’s acquisitions have expanded its portfolio of solutions and have been contributing favorably to the top-line numbers.
Some of the notable recent acquisitions include that of ecobee, Apricty and Off Grid Energy Ltd. In December 2021, Generac acquired ecobee, which is a leader in sustainable smart-home solutions. Prior to that, GNRC acquired Apricity Code Corporation for an undisclosed amount. The acquisition will bolster Generac’s efforts to provide a broader energy technology portfolio. It will also increase the company’s speed to market for its Clean Energy and Grid Services products and solutions.
Last year, the company acquired a leading designer and manufacturer of energy storage products and solutions, Off Grid Energy Ltd. The technical expertise of the Off Grid Energy team will enable Generac to bolster its product roadmap.
In the last reported quarter, net sales increased 40% year over year and came in at $1.29 billion, beating the Zacks Consensus Estimate by 2.4%. For 2022, Generac expects revenue growth between 36% and 40%, unchanged from the previous guidance. This includes a net impact between 5% and 7% from acquisitions and foreign currency changes.
At present, GNRC carries a Zacks Rank #3 (Hold). The stock has lost 57.2% in the past year compared with the
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