Telecommunications company CenturyLink, Inc. CTL is currently pursuing acquisitions to boost its portfolio and enhance its services. Yesterday, the company announced the acquisition of Orchestrate, a company that offers a completely managed database facility for the fast application development. Following the development, the company’s shares gained more than 1.5% yesterday.
However, the financial terms of the deal have been kept under wraps.
Orchestrate, a Portland-based company which was founded in Jan 2013, provides support to developers aiding the use of NoSQL database more skilfully. In the past, both the companies had jointly worked on certain projects. Thus, it is pretty clear that the Orchestrate buyout will boost CenturyLink’s cloud platform with fresh Database-as-a-Service (DBaaS) abilities.
In Dec 2014, CenturyLink took over two companies. The first acquisition was that of DataGardens, a leading Canadian provider of software for cloud-based disaster recovery-as-a-service (DRaaS) ideally suited for small and mid-sized enterprises. Following that, the company bought Cognilytics, a leading provider of advanced predictive analytics and Big Data solutions to mid-sized and large enterprises.
Over the last three years, CenturyLink has been trying all means to establish itself as a global leader in cloud infrastructure and hosted IT solutions for enterprise customers. In 2011, the company acquired leading cloud and colocation service provider Savvis for $3.2 billion.
Also, we believe the company’s strong network capabilities, integrated hosting and network solutions will promote further growth in the cloud business.
CenturyLink currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in this sector include Ruckus Wireless, Inc. RKUS, Level 3 Communications, Inc. LVLT and Vonage Holdings Corp. VG. All these stocks hold a Zacks Rank #2 (Buy).
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