Rockwell Automation (NYSE:ROK) agreed to acquire Cubic to expand its offering of electrical panels for factories and power plants. Terms of the agreement weren't disclosed.
Cubic, which is based in Bronderslev, Denmark, also has customers in the renewable energy and data center industries. The company's control panels can be integrated with Rockwell's intelligent motors that feed factory operations data into a computer network.
“Cubic’s innovative motor control solutions strengthen our portfolio of leading intelligent motor control technologies,” Bob Buttermore, vice president and general manager of Rockwell’s power control business, said in a prepared statement.
Cubic estimated it will report more than $75 million in sales for the year ended Sept. 30. The transaction is subject to regulatory approval and is expected to close by the end of this year.
Rockwell's stock has declined 37% this year, compared with a 25% loss for the S&P 500 Stock Index (SP500).
The company in July reported Q3 non-GAAP EPS of $2.66, beating the consensus estimate $0.32. Its revenue rose 6.5% from the prior year to $1.97 billion, and missed estimates by $10 million.
Seeking Alpha contributor Passive Income Pursuit has a Hold rating on Rockwell (ROK) on its valuation and dividend history. Contributor Cavenagh Research rates Rockwell (ROK) as a Buy on the growth in enterprise automation.