Trimble Inc. TRMB recently agreed to acquire a transportation management system (TMS) provider, Kuebix, for an undisclosed amount.
The transaction is expected to close in first-quarter 2020, subject to customary closing conditions. Post the completion of this acquisition, Kuebix's business will be part of Trimble's Transportation sector.
The latest deal will allow Trimble to develop a single logistics platform wherein shippers, carriers and intermediaries can work in collaboration with each other.
Notably, the Software-as-a-Service (SaaS) cloud platform will enable all participants in the supply chain to plan their strategy and design an optimized transportation network. It will optimize the entire logistics process from order management to financial settlement, helping both carriers and shippers to increase work efficiency, as well as reduce costs.
This deal will augment Trimble's transportation technology portfolio by developing a single transportation management system platform for the shippers and carriers in North America.
Trimble Inc. Price and Consensus
Expanding Transportation Portfolio
The latest acquisition is a testament to Trimble’s continued focus on expansion of the transportation solutions portfolio.
In addition to the deal, the company recently unveiled a Contract Maintenance module in a bid to strengthen the transportation solutions portfolio. In addition, its buyout of a fleet management provider, Veltec, helped in strengthening fleet safety and efficiency solutions portfolio.
Further, the company recently rolled out TMW.Suite and TruckMate transportation management system (TMS) solutions, which provide advanced transportation operations management to transportation and logistics providers.
We believe expanding transportation offerings will deliver better customer experience, which in turn will strengthen its customer base. Notably, it won a client, Merchants Distributors, which will leverage Trimble SmartDelivery solution in order to provide cost-effective delivery services.
Notably, expanding portfolio and customer base are anticipated to accelerate sales growth in the company’s Transportation segment, which generated $198.3 million sales in the last reported quarter. The figure was up 4.2% year over year and accounted for 25.3% of total revenues.
Zacks Rank & Other Stocks to Consider
Currently, Trimble carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader technology sector include Itron, Inc.
ITRI, MACOM Technology Solutions Holdings, Inc. ( MTSI Quick Quote MTSI - Free Report) and Fiverr International Ltd. FVRR. While Itron carries a Zacks Rank #1 (Strong Buy), the other two stocks hold a Zacks Rank #2. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Long-term earnings growth for Itron, MACOM Technology and Fiverr is currently projected at 25%, 15% and 44.2%, respectively.
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