Industrial software company AVEVA plans to acquire OSIsoft, a real-time industrial data software and services company, for $5 billion. The deal is expected to close by the end of the calendar year 2020, according to a statement released by the companies.
This is M&A deal 339 that ChannelE2E has covered so far in 2020. See the full M&A deal list here.
AVEVA, headquartered in Cambridge, United Kingdom, and OSIsoft, headquartered in San Leandro, California, will combine their industrial software and data management tools to help customers accelerate their digital transformation strategies, according to the statement. The two product suites are open and interoperable, and many customers leverage both solution sets today, the companies said.
AVEVA Acquires Industrial Software and Services Company OSIsoft
OSIsoft’s data management software will complement AVEVA’s end-to-end engineering, operations and performance offerings, according to the statement.
OSIsoft’s PI System enables customers to collect, normalize, store and stream real-time, high-fidelity operational data to applications, analytics, and AI and ML platforms. PI System acts as a single system of record for operations data, designed for massive cloud-enabled scale and data sharing across enterprises, and enables insightful operations decision making, according to the statement.
OSIsoft currently works with over 1,000 power and utilities companies, 38 of the Global Fortune Top 40 oil and gas companies, all of the Global Fortune Top 10 metals and mining companies, 37 of the world’s 50 largest chemical and petrochemical companies and nine of the Global Fortune Top 10 pharmaceutical companies, according to OSIsoft.
Integrating OSIsoft’s PI System into AVEVA’s software portfolio will create an integrated data foundation that can drive big data, cloud and AI-driven insights to create meaningful business outcomes for customers in industries such as consumer packaged goods (CPG), pharmaceutical, water and wastewater and utilities, among others, the companies said in the statement. This combination enables AVEVA to grow and diversify the industries it serves as well as continue to expand its footprint in existing and new markets and geographies.
AVEVA and OSIsoft Partner Programs
Both companies go-to-market strategies are partner-centric; AVEVA’s global partner program includes more than 5,000 strategic sales and support, delivery and technology partners, the company said. OSIsoft’s partner network includes more than 200 partners that reach more than 4,500 global customers, according to the company.
Craig Hayman, CEO of AVEVA, said of the deal:
“Combining AVEVA and OSIsoft is yet another significant milestone in our journey to achieving the ambitious growth goals that we have set. This will not only help us serve existing customers better but also open the flood gates to new opportunities which will accelerate the delivery of our digitization vision. Data has been enabling organizations to more effectively determine the cause of problems by allowing them to visualize what is happening in different locations, departments and systems. This agreement will enable our customers to improve business processes as well as eliminate inefficiencies. We are extremely proud to be moving into the next chapter with an even stronger solutions portfolio as well as an ever-increasing and robust customer base which continues to make us leaders in our sector.”
OSIsoft founder and CEO Dr. J. Patrick Kennedy added:
“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.”