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Trimble Acquires CSC (UK)

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Trimble Navigation Ltd. (TRMB), an original equipment manufacturer (:OEM) of positioning, surveying and machine control products, has acquired the privately-held CSC (:UK) Ltd. from ISIS Equity Partners. The financial terms of the deal were not disclosed.

Leeds, England-based CSC develops software solutions for the analysis and design of concrete buildings. These solutions are used by engineers for structural design calculations, general analysis, and steel and concrete building design. Also, CSC is a strategic Analysis and Design partner of Tekla, a company acquired by Trimble in 2011.

Upon the completion of the deal, CSC’s software solutions will become part of Trimble Buildings' Structures Division and will come under Trimble's Engineering and Construction (E&C) segment.

The acquisition, effective immediately, will extend Trimble’s capabilities in serving its customers in the construction business. It will enable the company to provide improved product offerings and better handle the increasing complexity of the E&C industry. Additionally, the deal will help the company to increase its market share in the United Kingdom, Asia, South Africa, Middle East and the U.S., where CSC already has a strong presence.

Trimble has an aggressive merger and acquisition strategy. In 2012, Trimble completed half a dozen acquisitions serving various business models. Earlier this year, the company acquired a 3-D modeling software platform from Internet search giant Google Inc. (GOOG). In September, Trimble acquired New Zealand-based Asset Forestry Limited. The company’s acquisitions have helped it to strengthen its portfolio, enhance the product line, boost top line and position itself in markets with better growth prospects.

In the third quarter of fiscal 2013, Trimble earned revenues of $556.5 million. Revenues were down 3.4% sequentially but up 10.3% year over year and at the lower end of the guided range of $555 million–$565 million. The revenues in the last quarter were impacted by inconsistent market conditions and weak investments.

Currently, Trimble has a Zacks Rank #3 (Hold). Other stocks that are worth considering include Control4 Corporation (CTRL), Garmin Ltd. (GRMN) and Daktronics Inc. (DAKT), all carrying a Zacks Rank #2 (Buy).

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