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Zebra Technologies Acquires Profitect, Boosts Offerings

Zacks Equity Research

Zebra Technologies Corporation ZBRA recently acquired Profitect Inc., a major provider of prescriptive analytics for the retail and consumer packaged goods industries. The financial terms of the buyout were kept under wraps.

Profitect’s solutions aid customers in boosting inventory and pricing accuracy, supply chain inefficiency, and assortment discrepancies by leveraging data from across their value chain. Its solutions help in detecting potential opportunities and offer suggestions to a user’s mobile device, eventually improving operational efficiency.

Acquisition Rationale

Combined with machine learning and prescriptive analytics, Profitect’s solution and proficiency will enable Zebra Technologies to help customers make better and more informed decisions. It will also provide visibility to their businesses and aid them in finding out areas of improving sales and margin.The acquisition will also complement the development of Zebra Technologies’ Savanna data platform. Profitect’s machine learning and prescriptive analytics solutions, when combined with Zebra Technologies’ solutions, will aid customers to boost labor productivity, inventory management and supply chain efficiency.

Other Notable Buyouts

In August 2018, Zebra Technologies acquired Xplore Technologies Corporation, which designs, integrates, markets and sells rugged tablets that are primarily utilized by industrial, government, and field service organizations. The buyout was made with an aim to expand the company’s portfolio of mobile computing devices to cater to a wide range of customers. It has been included in Zebra Technologies Enterprise Visibility & Mobility segment.

Notably, analysts have become increasingly bullish on the company. In the past couple of months, the Zacks Consensus Estimate for 2019 earnings has increased from $12.48 to $12.60, thanks to five upward estimate revisions versus none downward.

However, the company faces strong competition in all product categories and subcategories. Notably, its major competitors include Panasonic Corp. PCRFY, Cisco Systems, Inc. CSCO and Honeywell International Inc. HON.

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