Stock Monitor: Silver Spring Networks Post Earnings Reporting
LONDON, UK / ACCESSWIRE / January 09, 2018 / Active-Investors.com has just released a free research report on Itron, Inc. (NASDAQ: ITRI). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ITRI as the Company's latest news hit the wire. On January 05, 2018, the technology and services Company announced the completion of the previously announced agreement to acquire Silver Spring Networks, Inc. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Itron and Silver Spring Networks (NYSE: SSNI) most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=ITRI
www.active-investors.com/registration-sg/?symbol=SSNI
Through this acquisition, the Company expects to strengthen its ability to deliver a wider portfolio of solutions and to increase the pace of growth and innovation in the smart city and industrial IoT sectors. The Silver Spring Networks business, after the close of the transaction, is a wholly-owned subsidiary of Itron, Inc., and would be integrated and reported as a new business segment, namely, Itron Networked Solutions.
The Agreement
On September 18, 2017, Itron announced the signing of a definitive agreement to acquire Silver Spring for $16.25 per share in cash. The transaction, according to the initial announcement was valued at about $830 million, net of $118 million of Silver Spring's cash. Silver Spring, headquartered in San Jose, California, delivers Internet of Important Things connectivity platforms and solutions to utilities and cities.
More recently, on January 03, 2018, the Company announced that Silver Spring Networks' stockholders approved the announced merger with Itron, where the transaction had been expected to close on or around January 04, 2018.
Silver Spring observed net revenues of $311 million in 2016, with a gross margin of 44% and had a backlog of $1.2 billion at the end of full-year 2016. The Company has a global presence in the smart utility and smart city sectors, where it generated more than 20% of its revenues through recurring managed services and SaaS solutions - a segment Itron finds complementary to its portfolio.
Silver Spring delivered over 26.7 million network-enabled devices across five continents, where Itron expects about $50 million in annualized cost synergies, to be realized within 3 years post the completion of the transaction. The acquisition, according to Itron, will accelerate its long-term growth rate, and be accretive to the gross margin in the first year after the completion of the transaction.
Company Growth Prospects
Itron is a leading technology Company that delivers electricity, gas, water, and thermal energy measurement devices and control technology; communications systems software; as well as managed and consulting services.
The Company views the acquisition as a step to converge the companies' complementary, standard-based technologies, which would in turn enhance customer efficiencies with solutions that optimize devices, network technologies, analytics, and outcomes.
The agreement, according to Itron, would enable it to accelerate investment in new solutions and elevate the innovation threshold for the end-customer base, which the Company states to be about 200 million people. Itron also declared that it would provide total consolidated Company revenue and non-GAAP EPS guidance for full-year 2018, inclusive of the addition of Silver Spring Networks, in conjunction with its Q4 2017 and full-year 2017 results.
Stock Performance Snapshot
January 08, 2018 - At Monday's closing bell, Itron's stock was marginally up 0.36%, ending the trading session at $70.45.
Volume traded for the day: 352.45 thousand shares, which was above the 3-month average volume of 298.98 thousand shares.
Stock performance in the last month – up 4.53%; previous six-month period – up 2.18%; past twelve-month period – up 10.16%; and year-to-date - up 3.30%
After yesterday's close, Itron's market cap was at $2.73 billion.
Price to Earnings (P/E) ratio was at 41.17.
The stock is part of the Technology sector, categorized under the Scientific & Technical Instruments industry. This sector was up 0.4% at the end of the session.
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