Badger Meter, Inc. BMI has acquired s::can GmbH for €27 million in cash. The deal is part of the Milwaukee, WI-based controls products manufacturer’s growth strategies.
Badger Meter’s strong cash generation and balance sheet allow it to execute its capital allocation strategy. This involves making investments to grow its business organically and through acquisitions.
Founded in 1999, Vienna, Austria-based s::can is a privately-held provider of water quality monitoring systems. The company specializes in optical water quality sensing solutions that provide real-time measurement of a range of parameters.
With sales offices in six countries and sales partners around the world, s::can’s water quality monitoring systems are available in more than 45 countries. In 2019, it generated around $15 million in revenues.
s::can’s solutions meet the Environmental Protection Agency and other regulatory guidelines. These capture real-time data through sensors and systems that do not rely on reagents and other consumables resulting in lower capital and operating costs.
Badger Meter’s ORION Cellular radios and BEACON software solution enable efficient and sustainable delivery of actionable data to utilities allowing for remote monitoring and control of critical operations.
The addition of real-time water quality parameters to Badger Meter’s core flow measurement, pressure and temperature sensing capabilities enhances the scope of data for municipalities to improve operational awareness.
Badger Meter aims to expand its smart water offerings by bringing together technologies in instrumentation while leveraging its Advanced Metering Infrastructure solution. At the same time, the company is focused on returning cash to shareholders via dividends.
Shares of Badger Meter have returned 25.2% in the past year against 11.2% decline of the industry.
The Zacks Consensus Estimate for the company’s current-year earnings has been revised 12.7% upward over the past 30 days.
Badger Meter carries a Zacks Rank #2 (Buy), at present.
Other top-ranked stocks in the industry include Watts Water Technologies, Inc. WTS, Transcat, Inc. TRNS and Sensata Technologies Holding plc ST, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Watts Water delivered a trailing four-quarter positive earnings surprise of 25.8%, on average.
Transcat delivered a trailing four-quarter positive earnings surprise of 93.4%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Sensata delivered a trailing four-quarter positive earnings surprise of 6.7%, on average. The company’s earnings beat the consensus estimate in three of the last four quarters.
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