Trimble Navigation (TRMB - Analyst Report) recently announced that it has acquired privately-held Logicway based in Oldenzaal, The Netherlands. The financial terms of the deal were not disclosed.
Logicway is a specialized software developer for the transportation and logistics (T&L) industry. Its software not only helps in synchronizing end-to-end business processes but also automates the steps involved in the wages and expenses calculation for businesses, helping to improve productivity and operational efficiency.
Logicway software is already integrated within Trimble’s T&L solutions. Upon the completion of the deal, the Logicway business will be reported within Trimble's Mobile Solutions (TMS) segment. The acquisition will enable Trimble to provide improved product offerings and better deal with the increasing complexity of the T&L industry.
Trimble is quite active on the mergers and acquisitions (M&A) front. The company’s acquisitions have helped it to build its portfolio and increase top-line growth. Acquisitions have also been positive for gross margins, while adding operating leverage. Last month, Trimble acquired privately-held TMW Systems, another specialized software developer for the transportation and logistics industry for $355 million. Earlier this year, Trimble acquired a 3-D modeling software platform from Internet search giant Google . The purchase price for the software was not revealed.
Trimble Navigation, Ltd. is an original equipment manufacturer (OEM) of positioning, surveying and machine control products. In the last-reported second quarter of 2012, TMS segment revenue of $81.4 million was up 3.9% sequentially and 102.4% from the comparable quarter of 2011. Trimble has been putting in a lot of effort here, discontinuing and disposing off non-focus product lines and building a desired portfolio through successive acquisitions. The latest acquisition is expected to further enhance the performance of commercial vehicles and fleets, thus driving segment revenue.
Trimble’s solid portfolio (enhanced by acquisitions), strong market position and strategic partnerships are expected to drive both revenue and earnings over the next few quarters.
Currently the shares of Trimble retain a Zacks #3 Rank (short-term “Hold” rating).