Garmin Ltd. (GRMN - Free Report) recently completed the acquisition of a privately-held company, Tacx Onroerend en Roerend Goed B.V (“Tacx”). However, the financial terms of the acquisition deal are not yet disclosed.
Tacx, a Dutch company, designs and manufactures indoor bike trainers, tools, and accessories. In addition, it also designs indoor training software and applications.
Post-acquisition, Tacx’s associates will become part of the global Garmin team. Nonetheless, Tacx’s headquarters will remain in Wassenaar, the Netherlands and distribution center in Germany.
Expanding Product Portfolio
The Tacx deal will help the company to expand its product portfolio. The offerings of Tacx include the NEO 2 and NEO Bike, among others. These devices which measure speed, power and cadence, have gained popularity in the global market.
Notably, all these products are expected to sustain the performance of Garmin across the geographical regions served by the company.
This deal is in line with Garmin’s strategy to expand its presence in international marketplaces in Germany. With this latest move, the company will be able to provide an enhanced experience to athletes with new and enhanced products.
Strategic acquisitions and other deals have significantly contributed to Garmin’s growth trajectory via expanding its product portfolio. The company expects the buyout of Tacx to be accretive to its fitness portfolio.
Garmin’s president and CEO said, “We are looking forward to leveraging the outstanding expertise and skills of the Tacx team to provide a seamless indoor and outdoor experience for athletes year round.”
In the last reported quarter, its Fitness segment increased 45.7% sequentially and 0.3% from the year-ago period, driven by new and improved products.
It is clear that the company is on the right track with regard to product offerings and expansion plans.
Notably, the recent acquisition will continue to help it in gaining momentum in the markets served by the company via improving its customer base. This will in turn aid Garmin’s top-line growth.
Zacks Rank & Other Stocks to Consider
Currently, Garmin carries a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the same industry include Expedia Group, Inc. (EXPE - Free Report) , Ctrip.com International, Ltd. (CTRP - Free Report) and ASOS plc (ASOMY - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Expedia, Ctrip.com and ASOS is currently projected at 13.4%, 23% and 8%, respectively.
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