Back to top

Image: Bigstock

Garmin (GRMN) Acquires Vesper Marine, Boosts Marine Segment

Read MoreHide Full Article

Garmin (GRMN - Free Report) has acquired Auckland, New Zealand-based Vesper Marine, which is well known for innovations in the marine communications space.

Vesper Marine offers Automatic Identification System (AIS), Very High Frequency (VHF) and vessel monitoring solutions for the marine industry.

Further, the company provides powerful communication tools for power, sail and workboats. Its user-friendly and intuitive interfaces help boaters to seamlessly communicate on the water.

Also, strength in the Cortex system remains noteworthy as it features VHF radio with smart AIS transponder and remote vessel monitoring technology.

We note that the latest acquisition is likely to strengthen Garmin’s marine technological solutions offerings.

Marine Segment in Focus

The buyout of Vesper Marine bodes well with Garmin’s growing efforts to bolster the marine segment. The company keeps bringing advanced technological solutions to provide a better experience to anglers, sailors, mariners and boat enthusiasts.

Apart from the underlined acquisition, it recently introduced the GPSMAP 79 marine handheld series, which includes all the necessary tools that mariners require when leaving shore.

It also unveiled the Garmin Surround View Camera System to offer captains a 360-degree view of their vessel’s perimeter for avoiding collision.

Additionally, it introduced the MSC 10 marine satellite compass with the multi-band global navigation satellite system that provides reliable, accurate GPS-derived heading and position information on water.

Further, the company launched a chartplotter and transducer bundle with PanoptixLiveScope sonar named LiveScope Ice Fishing Bundle LI for hardwater fishing.

Bottom Line

Due to strengthening marine offerings, GRMN has been gaining momentum across customers. Malibu Boats selected Garmin products for its Axis wakesurf and wakeboard boat line. Also, Manitou Pontoon Boats provides the company’s Garmin ECHOMAPUHD 73sv and GPSMAP chartplotters for its entire lineup. Further, Manitou added a range of its brand, Fusion Entertainment’s stereos, speakers and amplifiers.

Apart from this, GRMN announced support for Mercury Marine VesselView engine data across ECHOMAP Ultra, ECHOMAP UHD and GPSMAP series multi-function displays. The VesselView provides important Mercury engine information to boaters.

All these endeavors are expected to continue contributing well to the marine segment’s revenues. The segment generated $207.5 million in sales, accounting for 17.4% of third-quarter 2021 total net sales. Further, the segment sales increased 25% year over year.

Zacks Rank & Stocks to Consider

Currently, Garmin carries a Zacks Rank #3 (Hold).

Investors interested in the broader technology sector can consider some better-ranked stocks like Advanced Micro Devices (AMD - Free Report) , Mimecast Limited and Arrow Electronics (ARW - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Advanced Micro Devices has gained 62% over a year. The long-term earnings growth rate for AMD is currently projected at 46.2%.

Mimecast has gained 50.2% over a year. The long-term earnings growth rate for MIME is currently projected at 35%.

Arrow Electronics has gained 34.6% over a year. The long-term earnings growth rate for ARW is currently projected at 27.4%.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in