HOLLYWOOD, Fla. - NV5 Global, Inc. (NASDAQ: NVEE), a provider of professional and technical engineering and consulting solutions, has announced the acquisition of GIS Solutions, Inc., a firm specializing in geographic information system (GIS) technologies and services. The transaction, which includes a mix of cash and stock, is expected to be immediately accretive to NV5’s earnings.
GIS Solutions is known for offering a range of GIS services, including application development, cloud-based database design, and data science. Their work primarily supports state departments of transportation and utilities, focusing on asset management, service delivery, and real-time mapping and incident reporting. This acquisition is aligned with NV5's strategy to expand its tech-enabled services, which have shown higher margins and more rapid scalability compared to traditional surveying services.
Dickerson Wright, PE, Executive Chairman of NV5, emphasized the significance of the acquisition, stating that it complements NV5’s growth in the geospatial market and contributes to the company's ongoing efforts to drive margin expansion and organic growth.
GIS Solutions, headquartered in Springfield, IL, brings to NV5 its expertise in developing web-enabled GIS database applications that track transportation resources and asset conditions. These applications are adaptable to various platforms, including cloud-based environments, networked desktops, and mobile applications, to meet diverse client needs.
Jim Conlon, President of GIS Solutions, expressed enthusiasm about joining NV5 and the growth opportunities it presents for their employees, citing the benefits of becoming part of a leading geospatial data analytics firm in the nation.
NV5, with a presence in over 100 offices both nationally and internationally, offers a wide array of services across multiple sectors, aiming to deliver sustainable solutions to complex issues.
The information in this article is based on a press release statement from NV5 Global, Inc.
InvestingPro Insights
In light of NV5 Global, Inc.'s (NASDAQ: NVEE) strategic acquisition of GIS Solutions, Inc., it's valuable to consider the company's financial health and market position through real-time data from InvestingPro. NV5, recognized for its professional and technical engineering and consulting solutions, is making moves to enhance its high-margin, tech-enabled services. Here's how the numbers stack up:
With a market capitalization of $1.53 billion, NV5 is a significant player in its sector. The company's gross profit margin over the last twelve months as of Q4 2023 stands at an impressive 49.94%, indicating a strong ability to control costs relative to its revenue, which is particularly relevant as the company scales up its technology offerings like GIS services. NV5's P/E ratio, while on the higher side at 36.71 adjusted for the last twelve months, reflects investor confidence in its growth potential and profitability, which is also supported by analysts predicting the company will be profitable this year.
InvestingPro Tips highlight NV5's operation with a moderate level of debt, which suggests a balanced approach to leveraging and financial stability. Moreover, the company's liquid assets exceed its short-term obligations, providing it with the financial flexibility to pursue growth opportunities such as the recent acquisition.
For readers looking to delve deeper into NV5's financials and market performance, there are additional InvestingPro Tips available. These insights can be particularly valuable when assessing the company's future in the context of its current market valuation and recent business developments. Interested readers can find more tips at https://www.investing.com/pro/NVEE and can take advantage of an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24.
It's worth noting that NV5 is trading near its 52-week low, which could present a potential entry point for investors who believe in the company's long-term strategy and the synergies expected from the GIS Solutions acquisition.
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