Leading location technology developer Trimble Inc. (TRMB - Free Report) has acquired privately-held construction software firm Building Data for an undisclosed amount.
The deal is likely to close in the fourth quarter of this year. Building Data’s business will merge with Trimble’s Engineering and Construction (E&C) segment.
Rocklin, CA-based Building Data has been in the Mechanical, Electrical and Plumbing (MEP) data content management business since 2007.
Content managed by this company is in use in North America, Australasia, Europe and the Gulf States across a variety of commercial projects like institutional education, healthcare, pharmaceutical, semiconductor, multi-residential and wastewater management systems.
What’s Keeping Trimble Interested?
With the acquisition, Trimble is looking to merge its leading construction software and hardware solutions with Building Data’s Building Information Modeling (BIM) content. The alliance is aimed at offering superior data and analytics solutions that will help MEP contractors to solve issues in developing and maintaining project data.
Building Data’s managed content and its own SysQue software help clients build three dimensional computer aided design (3D CAD) based models from a proprietary database containing more than 6 million 3D manufacturer specific components.
"This wealth of content will enable MEP contractors and engineers to use their models to improve estimating, detailing, fabrication, purchasing, manufacturing and installation processes," said Pat Bohle, general manager of Trimble's MEP Division.
TRIMBLE INC Price
Trimble has an aggressive merger and acquisition strategy, having added a large number of companies over the past few years. In 2013, 2014 and 2015, it acquired four, 10 and five companies, respectively as well as important assets of several others to complement its current business and capabilities.
These acquisitions are small in comparison to Trimble and therefore did not lead to any integration issues. Rather, the acquisitions have helped the company to build a comprehensive portfolio, enter new markets and generate additional revenues.
The company also forms joint ventures where it is required to build a position in strategic areas. We expect acquisitions to remain an important driver for the company in the years to come.
Zacks Rank and Key Picks
Currently, Trimble has a Zacks Rank #3 (Hold). Better-ranked stocks worth considering in the wider technology sector include Kimball Electronics, Inc. , NVIDIA Corporation (NVDA - Free Report) and Stratasys Ltd. (SSYS - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
For the current year, the consensus estimate for Kimball Electronics has gone up by 8.1% in the past 30 days. Estimates for NVIDIA and Stratasys have remained unchanged over the same time frame.
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