Jacobs Engineering Group Inc. recently announced that it has obtained the patented rights of Bayer AG’s (BAYRY Quick QuoteBAYRY - Free Report) BAYQIK quasi-isothermal sulfuric acid converter and other associated technology. The undisclosed value deal is expected to boost Jacobs’ Chemetics process technology solutions’ business in the near term.

Per the new patent agreement, Jacobs has secured all the technical, market and commercial information related to the technology. Moreover, Bayer would be offering its transitional services for ensuring seamless transfer of BAYQIK business to Jacobs.

BAYQIK technology would aid Jacobs to efficiently convert process gas with high sulfur dioxide (SO2) concentrations. Hence, acquisition of this technology would reinforce Jacobs’ portfolio for sulfuric acid technology. The company would now be able to offer premium state-of-the-art technology to both high and low strength SO2 market segments.

Share Price and Zacks Rank

Share price of the company stood at $52.69 per share as of Aug 31, 2016. We expect the aforesaid announcement to result in stock price movement in the near term.

Jacobs currently carries a Zacks Rank #3 (Hold). The company remains on track to boost its financials via new contracts, improved backlogs, greater operational efficiency and increased innovations. However, headwinds like a stronger U.S. dollar, robust industry competition and dismal pricing environment in the global mining and energy market raise concerns.

Stocks to Consider

Some better-ranked stocks within the industry include Willdan Group, Inc. (WLDN Quick QuoteWLDN - Free Report) , and Boise Cascade Company (BCC Quick QuoteBCC - Free Report) . Both the companies hold a Zacks Rank #2 (Buy).

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