Tyco International plc TYC recently inked a definitive agreement to buy consumer analytics company ShopperTrak for $175 million, bolstering its Internet of Things (IoT) capabilities even further.
The move was applauded by investors as Tyco shares have appreciated 4.1% since Dec 22, the day the fire protection and security company announced the deal.
The deal, subject to customary closing conditions and regulatory approvals, is expected to close in the second quarter of fiscal 2016 and will be neutral to its fiscal 2016 earnings expectations.
However, the transaction will be accretive to Tyco’s earnings per share (before special items and excluding the impact of purchase price accounting) to the extent of 2 cents in the first year. ShopperTrak generates $75 million in revenues annually.
Chicago-based ShopperTrak, a global provider of retail consumer behavior insights and location-based analytics, monitors foot traffic and shopping patterns. The company knows how many people are shopping, where they buy and how much money they spend. ShopperTrak reportedly delivers this intelligence and customer traffic data to over 1,200 retailers in 97 countries.
ShopperTrak is a strong follow-on to Tyco’s recent FootFall acquisition — a global provider of retail traffic analytics that Tyco purchased in July. These two deals underscore Tyco’s strategy to expand its footprint in the retail vertical through accretive acquisitions.
Together, FootFall and ShopperTrak will enable Tyco to capture data from 35 billion shopper visits annually. With this extensive shopper behavior data, Tyco will deliver unprecedented global store traffic insights to the retail industry.
Tyco will thus be powerfully positioned to deliver retail clients with a one-stop-shop for monitoring systems, data and analysis capabilities.
Tyco currently has a Zacks Rank #3 (Hold). Some better-ranked stocks that look promising in the same space include Brady Corp. BRC, sporting a Zacks Rank #1 (Strong Buy), along with Lakeland Industries Inc. LAKE and Pointer Telocation Ltd. PNTR, both carrying a Zacks Rank #2 (Buy).
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