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Jones Lang LaSalle to Buy ValuD, Expand Technology Expertise

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Jones Lang LaSalle Incorporated (JLL - Free Report) , better known as JLL, recently entered into an agreement to acquire ValuD Consulting, a U.S. provider of IBM software integration and consulting services.

The acquisition will add 300 technology experts, recruited through ValuD’s university partnerships program, to JLL’s Technology Solutions team. This will significantly enhance the company’s ability to provide market-leading technology systems, as well as improve decision making and business performance for its clients.  

The acquisition will likely close in November and is subject to customary closing conditions.

The commercial and real estate services firm’s clients will benefit from ValuD’s consulting offerings including IBM’s (IBM - Free Report) TRIRIGA facility management software system, IBM Maximo and Watson Internet of Things (IoT) services.

Through this buyout, the company is expected to give a boost to its technology-consulting based facilities management capabilities, which is considered as one of its important business segments.

Per management, the acquisition is also anticipated to offer the company immense scope to deepen its expertise in IBM digital solutions. Further, it will provide JLL with an opportunity to explore new technologies like artificial intelligence, cognitive buildings and predictive analytics.

Notably, the acquisition comes as part of the company’s focus on remaining relevant in the era of digital transformation. This will help JLL to differentiate its technology solutions offering to its clients.

In line with JLL’s primary focus, the company has undertaken notable initiatives to develop and acquire technologies for improving its real estate operations. Most recently, it partnered with Clarizen for a cloud-based global project management technology platform that will support the company’s traditional commercial real estate project management. (Read more: Jones Lang Rolls Out Project Management Cloud Capabilities)

Although these services will help JLL to drive profitability for its clients and the company, intense competition from international, regional and local players in the market is a concern. In addition, given its international presence, JLL often faces unfavorable movements in foreign currency, impacting top-line growth.

Currently, the stock carries a Zacks Rank #3 (Hold).

Shares of JLL have outperformed its industry in the past year. Shares of the company have gained 8.4% against the industry’s fall of 3.5% during the same time period.


Key Picks

Some better-ranked stocks from the same space are Deutsche Wohnen AG (DWHHF - Free Report) and CBRE Group, Inc. (CBRE - Free Report) . While Deutsche Wohnen sports a Zacks Rank of 1 (Strong Buy), CBRE Group carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

Deutsche Wohnen’s Zacks Consensus Estimate for 2018 earnings has remained unchanged at $1.58 over the past month. Its shares have gained 21.7% in a year’s time.

CBRE Group’s Zacks Consensus Estimate for 2018 earnings was marginally revised upward to $3.16 in a week’s time. Its shares have returned 11.4% over the past year.

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