FARO Technologies (FARO) has acquired HoloBuilder, Inc for $34 million in cash. FARO Technologies is a global source for 3D measurement, imaging, and realization technology.
Following the announcement, FARO shares climbed 2.15% to close at $76.92 on June 7.
HoloBuilder is a technology firm that develops enterprise software with the help of 360° photos, machine vision, and artificial intelligence. The company’s 3D platform easily captures, views, and controls project progress, helping contractors to see all details of current and historical progress at the construction site.
The acquisition will add better image management and enhanced remote access capabilities to FARO’s 3D point cloud-based laser scanning, thereby enhancing the company’s Digital Twin offerings.
FARO Technologies CEO Michael Burger said, “The high-value that digitalization brings to the AEC and Operations & Maintenance (O&M) industries creates significant market opportunity for FARO.”
Burger further added, “The addition of HoloBuilder to our offering accelerates the reality of a true end-to-end Digital Twin solution and advances our strategic objective of increased recurring revenue through market share gains in this large and growing segment.” (See FARO Technologies stock analysis on TipRanks)
On April 30, Needham analyst James Ricchiuti reiterated a Hold rating on the stock.
Ricchiuti said, “With a management team that is well-regarded for improving shareholder value, the valuation currently accorded FARO is baking in considerable improvement in the business over the next year.
He further added, “While business bottomed in the June 2020 quarter, the company continues to face a challenging macro environment across some of its major end markets. That said, the combination of a retooled go-to-market strategy, traction with new products and probable market share gains are driving a faster recovery than we anticipated.”
Overall, the stock has a Hold consensus rating based on 2 unanimous Holds. The FARO average analyst price target of $75 implies 2.5% downside potential from current levels. Shares have increased 29.5% over the past year.