Aptiv PLC APTV announced the completion of the Wind River Studio acquisition from TPG last Friday. The revised transaction price is $3.5 billion instead of $4.3 billion announced in January 2022.
Wind River is a provider of intelligent edge software solutions. Its software allows the secure development, deployment, operations and servicing of mission-critical intelligent systems. This edge-to-cloud software portfolio spans the aerospace, defense, telecommunications, industrial and automotive markets.
Over the past year, shares of Aptiv have declined 44.2% compared with the 61.2% decline of the industry it belongs and the 21.2% fall of the Zacks S&P 500 composite.
Aptiv PLC Price
Aptiv PLC price | Aptiv PLC Quote
APTV’s Platter
The acquisition will see the combination of the Wind River Studio offeringwith Aptiv’s complementary SVA platform and automotive expertise. This will help APTV strengthen its position in the automotive software solutions market.
Wind River Studio will continue to operate as a stand-alone business within Aptiv as part of its Advanced Safety & User Experience segment.
Considering the changes the automotive industry is going through, the deal seems to be a strategic move on Aptiv’s part, indicating its transformation to the edge-enabled, software-defined future.
Kevin Clark, chairman and chief executive officer of Aptiv, stated, “With Aptiv and Wind River’s complementary portfolios and decades of combined experience in delivering innovation in safety-critical systems, we will drive significant value for our customers.”
Zacks Rank and Stocks to Consider
Aptiv currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation BAH and CRA International, Inc. CRAI.
Booz Allen presently carries a Zacks Rank #2 (Buy). BAH has a long-term earnings growth expectation of 8.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8% on average.
CRA International carries a Zacks Rank of 2 at present. CRAI has a long-term earnings growth expectation of 14.3%.
CRA International delivered a trailing four-quarter earnings surprise of 25.7% on average.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Charles River Associates (CRAI) : Free Stock Analysis Report
Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report
Aptiv PLC (APTV) : Free Stock Analysis Report