Joseph F. Kovar
The acquisition, the second this year for PTC, aims to extend PTC’s closed-loop product lifecycle management offerings to its downstream enterprise asset management and field service management capabilities.
PTC, a software developer focused on the digital side of product lifecycle management, announced Thursday that it has acquired ServiceMax, a developer of cloud-native field service management software, in a deal in cash worth approximately $1.46 billion.
PTC’s proposed acquisition of ServiceMax, which was sold in 2019 by parent company General Electric to private equity firm SilverLake, is subject to regulatory approval and is expected to close in early January 2023.
ServiceMax is PTC’s second acquisition this year, following the May purchase of Intland, developer of the Codebeamer suite of cloud-ready application lifecycle management (ALM) software products.
[Related: PTC Readies SaaS Offensive For Its CAD, PLM Applications]
For PTC, the acquisition of ServiceMax aims to strengthen PTC’s closed-loop product lifecycle management offerings by extending the digital thread of product management into enterprise asset management capabilities downstream of the business and field service management.
Closed-loop product lifecycle management, or closed-loop PLM, is a way of collecting useful product information throughout the product lifecycle, and then extracting knowledge from that information to better develop new product capabilities and enhance business opportunities.
PTC did not respond to a request for additional information from CRN before press time.
However, PTC President and CEO Jim Heppelmann said in a statement that the acquisition of ServiceMax will be a key part of his company’s closed-loop PLM strategy.
“The PLM capabilities that PTC has long offered to engineering and manufacturing departments provide the system of record for the digital definition of any product configuration. ServiceMax will complement this by providing the system of record for monitoring and servicing product instances after they leave the factory and are in use by the customer,” said Heppelmann.
Once the acquisition is complete, PTC will be able to complete the full digital product definition from computer-aided design (CAD) and PLM solutions with detailed usage data of its IoT capabilities and service history. complete ServiceMax, said Heppelmann.
“PTC is poised to be the only company that can give manufacturers this complete view of their products at every stage of the lifecycle,” he said.
The relationship between ServiceMax and PTC is based on their shared customer profiles, product synergies, and understanding of the importance of product data throughout the product lifecycle, ServiceMax CEO Neil Barua said in a statement. communicated.
“PTC has a strong and consistent track record of success, and now, following the growth and innovation we’ve achieved during our partnership with Silver Lake, we’re excited to have the ServiceMax team strengthen the service offerings of the PTC’s digital lead and closed-loop PLM portfolio,” Barua said.
Earlier this month, PTC released its financial statements for fiscal year 2022. For the year that ended Sept. 30, the company posted revenue of $1.93 billion, in up 7% year over year. The company expects revenue of $1.91 billion to $1.99 billion for fiscal 2023.
The purchase of PTC is expected to be paid in two stages, with $808 million to be paid at closing and $650 million to be paid in October 2023. Financing will come from cash on hand, borrowing from a credit facility existing and a new $500 million Term Loan.
Joseph F. Kovar
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