Rockwell Collins Inc. COL has acquired Pulse.Aero Limited, a UK-based company that specializes in self-service bag drop solutions and airline applications. The transaction price has not been disclosed by the company.
Acquisition Synergies
The Pulse.Aero acquisition aims to improve Rockwell Collin’s passenger processing services at airports and in airlines. It enabled the company to expand the Information Management Services strategy to support the connected aviation ecosystem.
The self-service bag drop market is witnessing considerable growth on the back of the immense benefits it offers to both airports and passengers. While on one hand, airports can increase passenger throughput without incurring capital expenditure on buildings and facilities, on the other hand, passengers can go through the check-in process faster and more efficiently.
Pulse.Aero’s products and services will be integrated into the Airport Systems portfolio of Rockwell Collins’ Information Management Services business.
Rockwell Collins’ Viewpoint
According to Dave Nieuwsma, senior vice president, Information Management Services of Rockwell Collins, the transaction will allow the company to “streamline and simplify the passenger journey through a fully connected airport.” It will also aid the improvement of the company’s suite of self-service passenger processing solutions.
Note that Rockwell Collins has tied up with Pulse.Aero for a number of similar deployments, including Dublin Airport, where new self-bag drop units were installed, thereby reducing queues and enhancing customer service significantly.
About Pulse.Aero
Pulse.Aero is a provider of reservation and departure control services for airports, airlines and other industry stakeholders through two major product lines – Sonic and Fusion. Sonic is a self-service check-in, bag-drop, security and boarding services system, which comes with a centralized command center to supervise operational access, management and control of the system. On the other hand, Fusion is an information and communication system that facilitates communication between various airport and airline back-office operational databases, reservation systems and departure control systems.
Price Movement
Rockwell Collins’ stock has gained about 2.6% in the last one year, underperforming the Zacks categorized Aerospace-Defense Equipment industry’s gain of 14.6%. This is probably due to tough competition faced by the company, its exposure to fixed-price contract as well as high exposure to foreign currency fluctuations. The company has also put up a weak show in comparison to other major players in the same space like Raytheon Company RTN and Spirit AeroSystems Holdings, Inc. SPR, both of which have been able to outperform the industry.
Zacks Rank & a Key Pick
Rockwell Collins currently has a Zacks Rank #4 (Sell). A better-ranked stock in the same space is Ducommun Inc. DCO, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Ducommun’s 2016 earnings estimates increased 4.3% in the last 30 days. The company’s share price increased 15.2% in the last three months.
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