Fortive (FTV) Boosts Healthcare Solutions Via Provation Buyout

Zacks Equity Research

December 28, 2021 at 11:54 AM·3 min read

Fortive Corporation FTV recently completed the acquisition of Provation Software in exchange for $1.425-billion cash.

Provation Software is a Minneapolis-based leading provider of clinical workflow software solutions that are utilized in hospitals and Ambulatory Surgical Centers.

The company offers innovative and advanced solutions to enhance clinical productivity and care coordination. It also ensures accuracy in reporting and billing to sustain high-quality patient care.

The recent acquisition has strengthened Fortive’s capabilities in software development. Further, it has added strength to the company’s Advanced Sterilization Products and Censis and thereby bolstered the Advanced Healthcare Solutions segment.

Additionally, the latest move positions Fortive well to capitalize on the prospects in the booming clinical workflow solutions market, which is riding on the growing adoption of solutions based on healthcare information technology and electronic health record.

Fortive Corporation Price and Consensus

Fortive Corporation price-consensus-chart | Fortive Corporation Quote

Advanced Healthcare Solutions Segment in Focus

The acquisition of Provation Software bodes well for Fortive’s growing efforts to strengthen the Advanced Healthcare Solutions segment.

The segment has been benefiting from the company’s subsidiaries, namely Advanced Sterilization Products, Fluke Health Solutions, Invetech and Censis.

Advanced Sterilization Products has been witnessing continuous expansion in the installed base, driven by strength in capital equipment. This remains a tailwind for the segment.

Additionally, strength in Censitrac SaaS offering and improvement in service-related revenues are contributing well to the company’s Censis division.

Fluke Health Solutions continues to benefit from its partnership with Ford. This remains a positive for segmental growth.

Further, Invetech’s collaboration with TreeFrog Therapeutics for transitioning high-throughput stem cell encapsulation technology to GMP system for commercial-scale cell therapy manufacturing remains noteworthy.

All these initiatives are expected to continue contributing well to the underlined segment’s revenues.

Thus, the segment has become an integral part of the company, which generated $308.4 million revenues, accounting for 24% of total third-quarter revenues and increasing 9.3% on a year-over-year basis.

Zacks Rank & Stocks to Consider

Currently, Fortive has a Zacks Rank #3 (Hold).

Investors interested in the broader technology sector can consider some better-ranked stocks like Advanced Micro Devices AMD, Mimecast Limited MIME and Nova Measuring Instruments NVMI. While Nova currently sports a Zacks Rank #1 (Strong Buy), Advanced Micro and Mimecast carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Buy) stocks here.

Advanced Micro has gained 68.3% on a year-to-date basis. The long-term earnings growth rate for the AMD stock is currently projected at 46.2%.

Mimecast has gained 40.4% on a year-to-date basis. The long-term earnings growth rate for the MIME stock is currently projected at 35%.

Nova has gained 106.5% on a year-to-date basis. The long-term earnings growth rate for the NVMI stock is currently projected at 32.2%.

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Fortive Corporation Price and Consensus

Advanced Healthcare Solutions Segment in Focus

Zacks Rank & Stocks to Consider

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