3M New Ventures, a part of 3M Company (MMM), recently obtained equity stake in Canadian company Smart Energy Instruments (SEI). The financing by 3M New Ventures was accompanied by several existing stakeholders increasing their equity in SEI as well, taking the total financing to $5 million.
SEI develops electronic chipsets with high-precision, real-time monitoring capabilities for smart grids. This stake will bolster 3M’s relevance in the energy sector. SEI’s innovative technology is likely to strengthen 3M’s leadership in this sector and enable the development of innovative solutions for utilities and electrical equipment manufacturers. As per research estimates, electric utility spending in asset management and condition monitoring systems globally is expected to be $50 billion by 2023.
SEI’s technology platform gives equipment manufacturers and utilities a competitive edge in functions such as grid load monitoring, fault detection and isolation. By owning an equity stake in this company, 3M is likely to reap the benefits of SEI's expertise and established business in the sector.
3M, together with its subsidiaries, operates as a diversified technology company with manufacturing operations spread over 70 countries. The company aims to deliver innovative security solutions to businesses and governments worldwide, thus ensuring the security of people and documents. 3M New Ventures, invests in innovative, high-growth companies working on technologies and business models.
3M remains focused on inventing new products to maintain its competitive advantage worldwide. The rise in demand for such innovative 3M product services is likely to augment its overall revenues.
3M currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now include Federal Signal Corp. (FSS), Macquarie Infrastructure Company LLC. (MIC) and ITT Corporation (ITT), each having a Zacks Rank #2 (Buy).
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