One of the notable transactions of the quarter was announced in October when Lennar Corp acquired CalAtlantic Group, Inc. for US$6.1 billion in cash and stock. The transaction is expected to generate annual cost savings and synergies of approximately US$250 million, with approximately US$75 million achieved in fiscal year 2018. Based in Irvine, California, CalAtlantic Group, Inc. provides home building services.
As the economy strengthens, Construction spending across all sectors has increased.
Industry Indicators
- Total US consumer spending, a driver for the IT needs of consumers, rose 1.7%, primarily from services expenditures, in December 2017 compared to the same month in 2016.
- US corporate profits, an indicator for corporate investment in information technology, rose 5.4% in the third quarter of 2017 compared to the same period in 2016.
- Total US revenue for computer systems design and related services rose 2.3% in the third quarter of 2017 compared to the previous year.
Posted by Peter Heydenrych.
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