Industrial component & equipment manufacturer Sun Hydraulics Corp. (SNHY) has recently entered into a technology licensing agreement with Sturman Industries, Inc. for an undisclosed amount.
The Agreement and Its Impact
As per the terms of the agreement, Sun Hydraulics will use the digital valve automation technology of Sturman. This technology will be utilized in the manufacture and trade of screw-in hydraulic cartridge valves in the fluid power markets.
Sun Hydraulics reportedly provides superior non-imitable application based solutions to its customers. By combining Sturman's electronics and digital magnetic expertise with hydraulic cartridge valves, Sun Hydraulics aims to provide faster, light-weight, less power-consuming and more affordable products to its clientele.
Through this licensing agreement, Sun Hydraulics will improve its product diversification and business internationalization process by introducing new electro-hydraulic cartridge valves in the market. The company intends to launch more useful products in 2015, in order to strengthen the next generation applications in the global industrial and mobile segments. Its new digital valve technology will aid such product invention process in the near future.
The Licenser and Licensee
Sturman helps to implement and design high-quality process controls in modern machines. The company's designs incorporate the advantages of flexibility and miniaturization with the help of rare software strategies and intelligent electronics. The unique software technologies used by the company includes specialized digital latching magnetics. Sturman's process control designs also include high-powered micro-hydraulic machines.
The licensee, Sun Hydraulics, is a well-established producer and designer of high performing screw-in type of hydraulic cartridge valves. The company provides its services in the global mobile and industrial markets. Since its inception in 1970, the electronic products of the company have found wide usage in the construction, mining, agricultural, automatic machinery and utility equipment industry.
Sun Hydraulics currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Blount International Inc. (BLT), The Babcock & Wilcox Co. (BWC) and Barnes Group Inc. (B). Blount International currently sports a Zacks Rank #1 (Strong Buy), while both Barnes Group Inc. and The Babcock & Wilcox Company hold a Zacks Rank #2 (Buy) each.
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