ABB Ltd. (ABB) announced that it has acquired French software company Newron System S.A. for an undisclosed sum. The deal is a strategic move by ABB to expand and strengthen its automation solutions for buildings. ABB will include Newron System in its Low Voltage Products division.
ABB is banking upon Newron System’s state-of-the-art building-automation software solutions, which will have a global reach through ABB’s broad sales network. Further, the company expects that the acquisition will broaden its offering to the channel partners and system-integrator partners for automation solutions in buildings.
Newron System primarily develops software for building-automation solutions and sells them through high-end distributors and installers. The company’s revenues are close to $10 million and its software help devices, such as blind controls and lights, to communicate with each other.
Of late, ABB is pursuing strategic acquisitions to strengthen its businesses in order to serve its customers better, while building and expanding its geographical reach. Prior to this, ABB acquired Power One, a leading provider of renewable energy and energy-efficient power conversion and power management solutions. Through this acquisition, ABB is expected to become a leading supplier of solar inverters globally.
ABB’s Low Voltage Products division primarily includes products and systems that provide protection, control and measurement for electrical installations, enclosures, switchboards, electronics and electromechanical devices for industrial machines, plants and related services. The offering also includes intelligent building control systems, also known as KNX systems, for home and building automation to improve comfort, energy efficiency and security.
ABB currently has a Zacks Rank #4 (Sell), which might not be a good option at the moment. However, other companies in the same industry such as Plug Power Inc. (PLUG), Rexnord Corp. (RXN) and AO Smith Corp. (AOS) are worth considering now. All three carry a Zacks Rank #2 (Buy).
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