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Garmin (GRMN) Acquires AeroData to Boost Aviation Business

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Garmin (GRMN - Free Report) is putting strong efforts to bolster its presence in the aviation industry on the back of its strengthening key offerings.

The company has acquired Scottsdale, AZ-based AeroData, a provider of aircraft performance software and services, in a bid to expand its aviation product portfolio. This is atestament to the above-mentioned fact.

Notably, AeroData’s portfolio — comprising runway analysis, takeoff and en route performance, weight and balance, automated passenger and cargo load planning, global airport obstacle database, and around-the-clock NOTAM monitoring — caters to the commercial and business aviation markets by serving more than135 airlines aroundthe world.

Further, AeroData supports major commercial aircraft such as Airbus, ATR, Boeing, Bombardier and Embraer.

We believe that the latest acquisition will likely help Garminto strengthen itspresence in the commercial aerospace market.

Further, the buyout will drive the company’s momentum across air transport services.

Garmin Ltd. Price and Consensus

 

Garmin Ltd. Price and Consensus

Garmin Ltd. price-consensus-chart | Garmin Ltd. Quote

Aviation in Focus

We note that the latest move bodes well for Garmin’sstrong endeavors toward bolstering its aviation segment, which offers integrated avionics or flight decks, panel-mounted navigation, traffic, audio, transponder, weather and other products such as portable and wearable solutions.

Garmin’s family of autonomous safety solutions — Garmin Autonomi, which comprises Emergency Descent Mode and Electronic Stability and Protection, and Autoland — has emerged as a key catalyst for its aviation business.

Moreover, a robust flight display portfolio has been playing a crucial role in shaping the growth trajectory ofthe company’saviation business.

Additionally, it enjoys solid momentum across OEM and after-market customers on the back of its popular aviation solutions.

Hence, the growing endeavors to strengthen the aviation segment will continue to drive Garmin’s topline as well as strengthen its competitive position against its peers like Honeywell (HON - Free Report) , Esterline Technologies’ CMS Electronics, and Raytheon Technologies’ (RTX - Free Report) Collins Aerospace, Sagem Avionics and Universal Avionics Systems.

Bottom Line

Worldwide provider of navigation, communications and information devices, Garmin has been making efforts to increase its share in all the markets served by it, backed by new products, upgrades to the existing ones and acquisitions.

Apart from the latest acquisition, the company acquired the assets of GEOS Worldwide and its subsidiaries in a bid to strengthen its capabilities in SOS technology. Notably, the move bodes well for its strong efforts toward enhancing its key offerings for rescue purposes during emergency.

Further, the buyout has helped the company to strengthen its Outdoor segment, which focuses on developing technologies and innovations to enhance users’ outdoor experiences.

We believe that acquisitions will continue to play a vital role in shaping the company’s growth trajectory.

Currently, Garmin carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks#1 Rank (Strong Buy) stocks here.

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