GE Makes New Acquisition and Alliance to Boost Portfolio

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GE Transportation - a division of General Electric Company GE, recently acquired a premier provider of cloud-based software solutions, ShipXpress, for an undisclosed amount. GE Transportation is a leading provider of technology solutions in various industries like railroad, marine, drilling, wind and mining.

About ShipXpress

Founded in Apr 2000, in the U.S., ShipXpress provides cloud-based software solutions that allow transportation, industrial, and commodities businesses to work in harmony with their supply chain partners. ShipXpress provides its services to major North American railroads and Fortune 500 companies in the energy, agriculture, chemicals, and metal space.

Benefits of the Deal

This deal will help expand General Electric’s Transportation portfolio, and positively impact its top line. Per the deal, the company will gain nearly 200 industry, technical, and software development experts who have been providing their services to ShipXpress.

The amalgamation of ShipXpress’ innovative software products and General Electric’s advanced sensing technology will help enhance the Predix platform of the latter.

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GE Joins with MIT Energy

In a separate press release, General Electric announced collaboration with MIT Energy Initiative (MITEI) to fund the institute’s advanced technology solutions to transform the global energy systems. Per the contract General Electric will provide $7.5 million over a period of five years ($1.5 million annually) towards MITEI’s research and project priorities. The company aims to work closely with four of MITEI’s Low-Carbon Energy Centers, which are working towards meeting future energy needs.

Important Developments

General Electric has recently moved its headquarters to Boston. The company is presently working towards developing and building its new global headquarters campus in Boston’s Fort Point neighborhood by 2018. Boston is known for its innovation, talent and infrastructure and has a strong ecosystem of companies, universities, start-ups and a firm base for R&D resources. Such qualities make Boston apt for General Electric’s new headquarters. This will likely augment the company’s business and will help it become the world’s leading digital industrial company.

General Electric currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include CLARCOR Inc. CLC, Crane Co. CR and Barloworld Ltd. BRRAY. All three stocks carry a Zacks Rank #2 (Buy).

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