Fortive (FTV) Acquires ServiceChannel, Boosts SaaS Portfolio
Fortive (FTV) strengthens the Intelligent Operating Solutions segment with the acquisition of ServiceChannel.
Fortive Corporation FTV recently completed the acquisition of ServiceChannel, a leading provider of a SaaS-based service automation platform for multi-site facility management.
ServiceChannel helps multi-site owners or operators in automating and managing workflows related to the maintenance of properties and similar assets.
Further, it has more than 500 global enterprise customers and 70 thousand facilities maintenance service providers.
The acquisition of ServiceChannel has added strength to Fortive’s SaaS portfolio. The company remains optimistic that it will generate higher profits in the near term.
ServiceChannel has joined the company’s Intelligent Operating Solutions segment.
Fortive Corporation Price and Consensus
Prospects to Aid Fortive
With the acquisition of ServiceChannel, Fortive has positioned itself well to penetrate the global cloud services market, which is witnessing high growth due to remote working trend owing to the coronavirus pandemic.
A report by Allied Market Research indicates that this market is expected to hit $1.62 trillion by 2030, witnessing a CAGR of 15.8% between 2021 and 2030.
Further, the buyout has helped Fortive in expanding presence in the SaaS market, which is continuously growing as organizations are adopting SaaS solutions for various business functions.
Per a report by Financial News Media, this market is likely to hit $307.3 billion by 2026, progressing at a CAGR of 11.7% from 2020 to 2026.
In addition, the Statista report reveals that the SaaS market worth is anticipated to be $145.5 billion in 2021.
Strength in Intelligent Operating Solutions Segment
The acquisition of ServiceChannel bodes well with Fortive’s growing efforts to bolster the Intelligent Operating Solutions segment.
The segment has been benefiting from the company’s subsidiaries, namely Gordian, Accruent, Fluke, Industrial Scientific and TeamSense.
The company recently acquired TeamSense and added innovative workflow solutions to its portfolio. This remains a major positive for segmental growth.
Growing initiatives by Fluke are also contributing well to the segment’s revenues. The recent launch of the LinkIQ product line by Fluke’s division, Fluke Networks, to troubleshoot network cabling for reducing Industrial Ethernet failures remains noteworthy.
Further, Gordian and Accruent are witnessing continuous demand from facility owners and operators. This remains a tailwind for the segment.
The segment has become an integral part of the company, which generated $541.8 million revenues, accounting for 41% of total second-quarter revenues and increasing 31.2% on a year-over-year basis.
Zacks Rank & Other Stocks to Consider
Currently, Fortive has a Zacks Rank #2 (Buy).
Other top-ranked stocks in the broader technology sector include Advanced Micro Devices AMD, ON Semiconductor ON and ASML Holding N.V. ASML. While Advanced Micro Devices sports a Zacks Rank #1 (Strong Buy), ON and ASML Holding carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for ON, Advanced Micro Devices and ASML Holding are currently projected at 53.9%, 44.6% and 33.5%, respectively.
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