Published on 10 May 2024 on Zacks via Yahoo Finance
Tetra Tech (TTEK) Buys Convergence & Boosts Product Portfolio
Tetra Tech, Inc. TTEK recently announced that it has acquired Convergence Controls & Engineering, a Littleton, CO-based systems integration and engineering services company. However, the terms of the buyout were kept under wraps.Convergence is a leading provider of integrated systems solutions to several sectors including power generation, manufacturing, mining, industrial agriculture and water among others. Some of the notable services provided by the company include the likes of engineering, system integration, measurement consulting and instrumentation & controls.The transaction boosts Tetra Tech’s capabilities in the digital water and energy practices with Convergence’s expertise in advanced data analytics, customized digital controls and software solutions, cloud data integration and cybersecurity applications. This acquisition will enable TTEK to offer a comprehensive line of integrated automation platform solutions to its clients across the water and energy sectors. Convergence will be part of TTEK’s Government Services Group segment.The company’s measures to expand product lines and market presence through successive acquisitions are noteworthy. The acquisition of LS Technologies (in February 2024) added significant additional capabilities and clients to its federal IT practice within its Government Services Group unit. Also, the RPS Group buyout (in January 2023) enhanced TTEK’s consultancy in water, environment and sustainable infrastructure, strengthening its foothold in renewable energy and environmental management.
Zacks Rank & Price Performance
Tetra Tech currently carries a Zacks Rank #2 (Buy). The company has been benefiting from strength in its Government Services Group segment, driven by higher inland navigation and coastal flood protection programs. Increased activity on clean energy and environmental services programs are aiding the Commercial/International Services Group segment.