PayPal at fueling station and diversifying portfolio
Gilbarco Veeder-Root, or GVR, a wholly owned subsidiary of Danaher Corporation (NYSE:DHR), signed a deal with PayPal in February 2013 to accept digital payments at its fueling stations and for in-store items across the U.S. PayPal is a wholly owned subsidiary of eBay Inc (NASDAQ:EBAY). PayPal will be integrated into Gilbarco’s Passport Point-of-Sale product, or POS.
In North America, around 30,000 POS systems are already installed. Currently, customers are paying for their purchases either by scanning a Quick Response Code, or QR code, or through Gilbarco’s mobile application. With this initiative, customers will able to pay using their PayPal account through their mobile devices, eliminating the need of carrying cash and credit cards. Through this deal, it will gain access to PayPal’s user base, which is around 125 million globally and 55 million in the U.S. It will also give an opportunity to Gilbarco’s equipment merchants to sell additional items using PayPal.
Danaher Corporation (NYSE:DHR) is also known for its acquisition activities. In January 2013, Danaher acquired Navman Wireless, its first acquisition in fleet and asset management space. Navman is one of the top five fleet management technology suppliers in the world. It currently monitors more than 175,000 vehicles and assets owned by over 14,000 organizations worldwide, making it the global leader in GPS-based fleet optimization products and services. It has a real-time vehicle tracking and analytics system, which helps the companies monitor, measure, and improve fleet-related costs and efficiencies.
After the acquisition, Navman will work as a standalone Danaher Corporation (NYSE:DHR) operating company, which will help in expanding its technology with a wide customer base in local services, transportation, construction, mining, and oil and gas. Also, it will help Danaher by expanding its operations in new geographical markets like Mexico, Italy, China, and Taiwan.
Looking at the inorganic growth and synergy from the acquisition of Goodrich Corporation and Primus Composites, Triumph Group Inc (NYSE:TGI) expects a rise in revenue in the long run.
ArcelorMittal (ADR) (NYSE:MT), with cost controls and the expansion plan in Liberia, is focused on increasing its revenue and production activity which will help company in achieving higher earnings.
Danaher Corporation (NYSE:DHR), with its vertical acquisition of Navman, will diversify its product portfolio and increase its footprint in new markets. The deal with PayPal and its plan to get benefits from the PayPal user base will help in future growth.
I recommend a buy for all three stocks.
Madhu Dube has no position in any stocks mentioned. The Motley Fool owns shares of ArcelorMittal (ADR) (NYSE:MT).
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