Industrial software giant AVEVA has plans to grow OSIsoft’s cloud-based Industrial IoT (IIOT) offering after agreeing a $5 billion takeover of the American firm.
A deal between the two firms was announced this morning following several weeks of negotiations. It will see AVEVA pay $4.6 billion in cash, with the balance payable in shares in the combined organisation, which will boast income of $1.2 billion. AVEVA expects the acquisition to go through by the end of the year.
OSIsoft provides real-time industrial data software and services. Its PI System enables customers to capture and store data, carry out analysis and share real-time insights from disparate sources.
AVEVA CEO Craig Hayman said: “The acquisition of OSIsoft is perfectly in line with our strategic vision and it will accelerate the enlarged group’s role in the digitisation of the industrial world, which is being driven by a need for sustainability, the industrial internet of things, cloud, data visualisation and artificial intelligence.
“The acquisition will enable AVEVA to broaden and deepen its relationships with existing and new customers and bring a more comprehensive product portfolio to market.”
Read More: Highways England Announces £1 Billion Tech Framework
Announcing the deal to the markets, AVEVA said the move would allow it to “accelerate the market adoption and expansion of OSIsoft Cloud Services (OCS) and other cloud-based offerings, which recently entered into an early adopter program and provide OSIsoft’s industry leading data management capability in a native cloud environment.”
OCS enables data collected through PI to be shared and analysed in the cloud.
The bumper acquisition will be funded through a discounted share issue, AVEVA said. OSIsoft founder Dr J. Patrick Kennedy, who is also the California company’s majority shareholder will retain a stake in the combined business and take up a new role as chairman emiratus. The firm’s second largest shareholder was SoftBank.
Dr J. Patrick Kennedy said: “Joining forces with AVEVA enhances and extends our ability to deliver on our key commitments to our customers, partners and employees.
“Together we will be better able to service the largest digital transformation projects in history, including across industry 4.0+ and IIoT. The next chapter in PI’s fifth decade will be exciting for our employees and customers, and I look forward to my continued involvement as Chairman Emeritus and shareholder.”
Founded in 1967 as CADCentre and based in Cambridge, AVEVA is one of the UK’s oldest technology firms. In 2017 it joined forces with Schneider Electric in a $3bn merger.
