ATS Buys System Integrator HSG Engineering


This article was originally published on TipRanks.com

ATS Automation Tooling Systems (TSE: ATA), a Canadian provider of automation solutions, announced Friday it has acquired HSG Engineering S.r.l., an Italian integrator of industrial automation systems serving primarily the pharmaceutical sector. Financial terms of the transaction were not disclosed.

HSG will join the Process Automation Solutions (PA) business of ATS, an independent provider of complete automation solutions for the process and manufacturing industries.

The acquisition deepens PA’s domain knowledge in the biopharmaceutical and pharmaceutical sectors, strengthens its regional presence in Italy, and improves its product portfolio.

HSG’s software offerings complement PA’s rapidly growing digital portfolio with established digital solutions for data integrity and analytics.

HSG, which has 50 employees, will continue to be led by its founder and CEO Tiziano Rossi.

President Commentary 

PA president Christian Debus said, “At PA, we are closing the gap between IT and operational technology in production. Integration is in our DNA. With our combined expertise in automation, digitalization, data analytics and AI, we are the partner of choice for global industrial companies looking to make the best use of their data to drive operational performance.”

Wall Street’s Take 

On Tuesday, National Bank analyst Maxim Sytchev reiterated a Buy rating on ATA with a C$64 price target. This implies 26.3% upside potential.

Overall, consensus on the Street is that ATA is a Strong Buy based on four Buys.

The average ATS Automation price target of C$62.33 implies 22.9% upside potential to current levels.

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